TAX LAW: The tax credit and its due appropriation.

In the complex scenario of tax obligations, the correct management and use of the Tax Credit emerges as a crucial aspect for the financial health of taxpayers. It is essential for entrepreneurs to be fully informed about the requirements and procedures established by the legal system to guarantee the legitimate appropriation of this credit.

The importance of knowing the legal parameters lies in the possibility of reducing the tax burden that currently weighs on companies. For this reason, in accordance with the tax provisions in force and the pertinent jurisprudence, the primary requirements for the valid appropriation of the Tax Credit are the following:

• Presentation of the Original Invoice or equivalent document.

• Link with the taxed activity.

• Concrete verification of the effective completion of the transaction.

• Exhibition of reliable means of payment.
  
  

It should be noted that the Regulatory Resolution of the Board of Directors No. 102100000011, article 50, lists the prerequisites and complements them with others linked to technical and formal aspects concerning the invoice.

In the case of the first requirement, during the inspection process, the Tax Administration usually observes the tax credit in case of absence of the original invoice. Consequently, it is of essential importance that the taxpayer establishes an appropriate methodology for the documentary file of the invoice.

In circumstances where the original invoice is lost, the taxpayer is encouraged to contact the issuer of the invoice to obtain an authenticated reproduction. Likewise, you can make a publication communicating the loss in a national media and/or file a complaint with the Special Force to Fight Crime regarding the loss of the Invoice. It is emphasized that legalization requires being granted by the issuer of the invoice, excluding the participation of a Notary of Public Faith, because he or she does not have the powers to carry out such an act.

Regarding the second requirement, the SIN repeatedly uses this argument to purify the tax credit, alluding to the lack of documentation that demonstrates the link between the purchase/expense and the taxed activity. Consequently, the taxpayer is urged to implement an appropriate method to document the relevance of the purchase or expense, particularly in those cases in which the connection with the taxed activity is indirect. It can be supported by reports, requirements, contracts, etc.

In reference to the third requirement, the taxpayer is advised to adopt appropriate measures to support the effective completion of the transaction. This can be achieved through accounting records, contracts, requirements, reports, photographic and audiovisual material, receipt minutes or service conformity minutes, including electronic correspondence. In the field of contracts, considerable emphasis is placed on the possibility of formalizing them or carrying out the recognition of signatures, mainly in contracts that involve considerably high amounts.

Regarding the fourth requirement, it is suggested that the taxpayer have documentary means to prove the payment of amounts less than Bs. 50,000, such as receipts, proof of delivery of funds or bank transfers, among others. However, in situations in which the sum reaches or exceeds Bs. 50,000, the banking of the disbursement will become unavoidable.

Due to the above, the taxpayer is urged to adopt accounting methods consistent with their commercial activity, with a view to counteracting, in the determination phase, the objections that the Tax Administration may raise, or to reverse said objections in the of challenge as usually happens in most cases.

Víctor Manuel Vásquez Alfaro
Abogado Litigante y Corporativo