On November 12, 2018, it was published in “El Diario Oficial La Gaceta”, Agreement No. 725-2018 issued by the Secretary of State in the Office of Finance. This Agreement contains amendments to the “Regulation of the Billing Regime, other Tax Documents and Tax Registry of Printers”. The Regulation is an instrument that contains the necessary provisions for taxpayers to issue Fiscal and complementary documents that allow them to support their economic activities, and which, in turn, enforce and identify the fiscal burdens that are retained and are discharged to the State.

Originally, these reforms would take effect on December 1, 2018, however, this term was extended by Agreement No.817-2018 until March 1, 2019. It is from this date that all taxpayers , regardless of the type of printing they use, (currently only the modalities of issuance by printing and auto printing have been implemented), they must only issue fiscal documents that comply with all the requirements contained in the Regulation.

By virtue of their business, many taxpayers acquire products locally and through imports for sale at the national level, these operations being taxed on sales tax, said tax being paid a tax credit in their favor. In order to qualify for the tax credit, the Sales Tax must have been paid at the time of purchase or importation. Therefore, the way to endorse it is with authorized vouchers according to the “Regulations of the Billing Regime, other Fiscal documents and Fiscal Registry of Printers”.

As stipulated in the Regulation, “the invoice” is the tax receipt authorized by the Tax Administration, issued to support the transfer of goods and / or provision of services. With the reform contained in Agreement No.725-2018, in the format of this it is essential to establish a section for the “Discounts and rebates granted”. With regard to the requirements to be completed at the time of issuance of the invoice, it is imperative to carry out the “Discrimination of discounts and rebates granted” if any. The foregoing also applies to the fiscal document called “Prevalued Invoice” Although, the invoice is the fiscal document that par excellence supports the tax credit of the Sales Tax and the cost and expense of the Income Tax, the reform contained in the Agreement No.725-2018, details among “the other vouchers” that also allow to support the tax credit, to the fiscal documents recognized by the State, product of International Treaties and Agreements, including the Ticket issued by the air transport companies and the documents issued by banking and insurance institutions among others that are under the regulation of the National Commission of Banks and Insurance. Even with this prerogative, these documents, as well as an invoice, must identify the issuer and acquirer, names and surnames, reason or company name, discriminate the taxes for rates and aliquots and record the date of their issuance. Non-compliance with the stipulations of the reforms contained in Agreement No.725-2018, not only entails for the taxpayer the risk of not being recognized the tax credit for Sales Tax and the cost or expense of Income Tax, It may also be subject to the sanction regime contained in the Tax Code. It is imperative for Tax Obligors to ensure that their tax documents meet all the requirements contained in the aforementioned Regulation and in turn verify the validity of tax receipts and supplementary documents.

We consider that the previous reform, although necessary, has not been timely, beyond that the Tax Administration in its communications indicated that the costs of issuing new checkbooks could be deducted from the Income Tax. Many taxpayers, especially large taxpayers, had to adapt their billing systems with a very short transition period. With the implementation of billing by electronic means (currently awaiting the start of a pilot plan), it is expected that future reforms to the format of tax documents will be easier for taxpayers to adopt.