On November 17, 2016, the SAT released Announcement [2016] No. 71 introducing new measures on the use of value added tax (“VAT”) invoices based on taxpayers’ tax credit rating: 

1. Simplified invoice collection

Until now, taxpayers had to collect their VAT invoices from the tax authorities monthly, according to their respective pre-verified volume of transactions. 

From now on, taxpayers with grade A tax credit rating can obtain VAT invoices for up to three month’s volume all at once, and taxpayers with grade B tax credit rating for up to two month’s volume. 

2. Extended cancellation of VAT invoice verification  

To date, VAT general taxpayers had to scan input VAT invoices to verify them before deducting them. 

To simplify the VAT deduction process, SAT’s Announcement [2016] No. 7 and Announcement [2016] No. 23, respectively, exempt VAT general taxpayers with grade A and grade B tax credit ratings from VAT invoice verification. Now, Announcement 71 further extends the exemption to VAT general taxpayers with grade C tax credit rating. 

Date of issue: November 17, 2016. Effective date: December 1, 2016