Ruling that designates Value Added Tax (VAT) Withholding Agents
Administrative Ruling SNAT/2015/0049 that designates VAT withholding agents, issued by the Superintendent of the National Integrated Service of Customs and Tax Administration (Servicio Nacional Integrado de Administración Aduanera y Tributaria - SENIAT), was published in Official Gazette No. 40,720 of August 10, 2015.
The following aspects are among the most relevant ones of the Administrative Ruling:
1. No withholding will be made when the supplier is a tax collecting agent and the operations involved are operations of sale of alcoholic drinks, matches, cigarettes, tobacco, and other tobacco-derived products. In this case, the withholding agent must consult the Single Fiscal Information Registry (Registro Único de Información Fiscal - RIF) through the Fiscal Web Site.
2. No withholding will be made when the supplier is registered with the National Registry of Exporters and has made, during the last six (6) months, requests for recovery of fiscal credits by reason of its exporting activity. In this case, the withholding agent must consult the List of Taxpayers Excluded from the Withholding Regime (“Listado de Contribuyentes Excluidos del Régimen de Retenciones”), through the Fiscal Web Site.
3. No withholding will be made when the total exempt or exonerated sales or service provision of the supplier represents a percentage exceeding 50% of its total sales or service provision operations during the preceding fiscal year. In this case, the withholding agent must consult the “List of Taxpayers Excluded from the Withholding Regime”, through the Fiscal Web Site.
4. No withholding will be made when the operations and the VAT are paid under the exception prescribed in article 146 of the Organic Tax Code (OTC) in force, that is, in foreign currency.
5. The withholding of one hundred percent (100%) of the tax accrued was suppressed in the cases in which the registration data of the supplier, including its domicile, does not coincide with the data indicated in the invoice or equivalent document. In this case, the withholding agent had to verify the coincidence between the aforesaid data and the data indicated in the invoice or equivalent document through the SENIAT’s web page.
6. The withholding of one hundred percent (100%) of the tax accrued was suppressed in the cases in which the supplier omits the filing of any of its VAT returns. In this case, the withholding agent had to consult the SENIAT’s web page.
7. A one hundred percent (100%) withholding of the tax accrued will be made when it is inferred from the consultation with the fiscal web site that the supplier of goods or services is subject to 100% withholding.
8. As to deductions from the tax withheld, the accumulated withholdings the discount of which is pending must be reflected in the electronic return “Value Added Tax Return and Payment 99030” (“Declaración y Pago del Impuesto al Valor Agregado 99030”).
9. As to deductions from the tax withheld, when the withholding voucher is delivered to the supplier after the filing of the return corresponding to the period in which the withholding was made, the tax withheld may be discounted from the tax portion determined for the period in which the delivery of the voucher occurred, always provided that the period of the statutes of limitation established in the Organic Tax Code in force has not elapsed.
10. With respect to the procedure to deliver the tax withheld, the informative return that the withholding agents had to make through the SENIAT’s web page was suppresed.
11. As to the issue of withholding vouchers, the period of time allowed for the withholding agents to deliver to the suppliers a voucher for each tax withholding made was reduced, which delivery must be made no later than within the first two (2) business days of the following VAT tax period. The voucher must also contain the total amount of the invoice or debit note, taxable base, tax accrued, and amount of tax withheld.
12. The withholding agents no longer have to keep the Purchase and Sale Books through electronic means, and the suppliers no longer have to itemize in the Sales Book the operations made with the withholding agents.
13. Administrative Ruling No. SNAT/2013/0030, published in Official Gazette No. 40,170 of May 20, 2013 was repealed.
The Administrative Ruling will become effective on the first day of the first calendar month beginning after the publication of the same in the Official Gazette of the Bolivarian Republic of Venezuela and will be applied to the taxable events occurred after its entry into force.
In order to access the Administrative Ruling, please click here.
“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”