Nine Months to Refund VAT to Exporters  

In El Salvador the export sector claims that delays of up to nine months are being reported on tax refunds due from the Treasury, which should take no more than 30 days.

Thursday, March 12, 2015

Seven months ago the Exporters Corporation of El Salvador (Coexport) submitted to the Ministry of Finance a proposal for self-assessment of Value Added Tax (VAT) with the aim of reducing the time it takes to receive tax refunds. To date they have not yet received a reply from the authorities and, according to the entrepreneurs themselves, the State owes approximately $50 million in this category.

Silvia Cuéllar, executive director of Coexport told that "... The proposal is a reverse charge of VAT. This means we cross match what companies have paid to the Government in respect of VAT with what the Government has from retained in VAT from export businesses, and the what is left over is paid immediately. "

"... The proposal is still under study by the Treasury because it would entail making reforms to different laws. This debt impacts on liquidity and limits firms, as well as slowing down investment projects."

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