Formalities for marking the Price of Sale to the Public in the labels of alcoholic drinks
Administrative Ruling No. SNAT/2015/0017 issued by the National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria – “SENIAT”) was published in Official Gazette No. 40,656 of May 8, 2015. Said Ruling establishes the formalities for marking the price of sale to the public (precio de venta al público - “PVP”) in the labels or printings of alcoholic drink containers.
Following are the most significant aspects of said Administrative Ruling:
1. All costs associated with the production or importation of alcoholic drinks, as well as the profit margins of all the commercialization chain up to the end consumer, will be understood as PVP for the purposes of article 19 of the Law of Tax on Alcohol and Alcoholic Species in force, relating to the taxable base of such tax.
2. The sales price to be paid by the end user will be the PVP, plus the relevant taxes, except for national or imported alcoholic drinks intended for sales establishments located in a territory under a special customs regime, which will only include the PVP.
3. In the case of non-industrial products, the sales price must be formed by the PVP, plus the tax on non-industrial production and the Value Added Tax (VAT).
4. Any variation in the prices of alcoholic drinks will be notified in writing to the Tax Administration by the manufacturers, national and non-industrial producers, and importers at least fifteen (15) business days in advance of the assessment of the tax on the PVP.
5. The PVP must be marked by the manufacturers, non-industrial producers, or importers, before the time when the merchandise is withdrawn from their establishments or from customs, as the case may be. In this connection, the relevant officer must check that the PVP marked in the label or printings of the containers of national or imported alcoholic drinks coincides with the PVP used as calculation base for the tax assessed and paid; such checking will be placed on record in a certificate.
6. The manufacturers, national and non-industrial producers, and importers will be allowed a period of ninety (90) calendar days as from the date when the Administrative Ruling enters into force in order to adjust the labels or containers for the marking of the PVP, when necessary. However, they must inform the prices by means of lists previously notified to the Tax Administration up to the date when the period of ninety (90) days ends.
7. Failure to comply with the duties indicated in the Administrative Ruling will be penalized in accordance with the provisions of the Organic Tax Code.
The Administrative Ruling became effective upon publication in the Official Gazette.
In order to access the Administrative Ruling, please click here.
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