Within the framework of the fiscal adjustment being discussed in El Salvador in order to sign an agreement with the IMF, local authorities intend to apply VAT, ISR and other specific taxes to companies that sell their products and services online.
At the beginning of March, the Ministry of Finance informed that El Salvador is in talks with the International Monetary Fund (IMF) to obtain a loan of approximately $1.3 billion.
After inconsistencies were detected between purchases reported by taxpayers and sales that the company declared to the tax authority, an investigation was initiated in Guatemala into the "La Barata" supermarket chain.
During the morning of December 7, representatives of the Public Ministry (MP) and the Superintendence of Tax Administration (SAT), held a press conference in which they explained some details about a new case of alleged tax fraud by the chain of stores "La Barata."
Despite a severe economic crisis, Costa Rican authorities have approved the imposition of a 1% VAT on several foodstuffs in the basic food basket, and 4% on certain tourist activities and construction services.
Before the emergence of the pandemic, the Costa Rican economy was already in a difficult state, and the impact of the covid-19 outbreak ended up hitting it in the worst way, which is evident in the performance of productive activity.
Faced with the health crisis affecting the Salvadoran economy, businessmen from the industrial sector asked the government to postpone income tax declarations until June 2020.
Another of the specific requests of the Salvadoran Association of Industrialists (ASI), is the prompt refund to exporters of Value Added Tax, through Treasury Notes.
With the reform approved by Congress, the airlines will avoid paying VAT and income tax twice.
The reforms that will come into effect in January 2021 were approved by Decree 2-2020, which received the endorsement of the Legislative on January 20.
In Guatemala, the Superintendence of Tax Administration completed the computer development phase of the platform, which will manage the new Electronic Regime for the Return of Tax Credit.
This computer development includes the registration for exporters who wish to adhere to this new Regime, as well as the implementation of the Electronic Form for Request for Return of Tax Credit Electronic Special Regime (SAT-2251), informed Agexport.
In Costa Rica, the Ministry of Finance proposes to apply VAT to services such as Netflix, Airbnb, Tinder, Skype, PlayStation Network and advertising on social networks, among others.
According to a resolution of the Ministry of Finance that should be in consultation in the coming days, credit card issuers would be required to receive the 13% tax.
The list of digital services objects of the collection of VAT amounts to 190, as some are repeated, as companies use different names at the time of billing their customers.
The changes that had been made to the Regulation of the Value Added Tax Law in Guatemala came into effect.
This is Governmental Agreement 222-2019 modifying the Regulation of the Value Added Tax Law, which contains provisions regarding the mechanisms for the recovery of the tax credit to exporters created by Decree 4-2019, informed the exporters' union.
Since November 4, 2019, the SAT Form 0471 entered into force in Guatemala to register in the new Electronic Regime for the Return of Tax Credit.
To apply to this mechanism, one of the requirements is to be incorporated into the Online Electronic Invoice Regime. According to Agexport, exporters of both goods and services are also eligible.
In Costa Rica, taxpayers interested in benefiting from exemptions or reduced rates of payment of Value Added Tax must register with the Directorate General of Taxation.
The changes were detailed on October 15, 2019, when the resolution of the General Directorate of Taxation (DGT) No. DGT-DGH-R-060-2019, entitled "Procedure for requesting registration, special orders for the authorization of exemption or reduced rate of Value Added Tax (VAT)", was published in the Official Newspaper La Gaceta."
Since October 1, Costa Rican producers and suppliers in the agricultural and fishing sector have a special regime for declaring and paying VAT, which provides that coffee producers, sugarcane and beekeepers will make an annual declaration.
The new Special Agricultural Regime (REA) does not change fiscal obligations, but it allows them to be adapted to the particularities of production processes, so as to facilitate compliance, informed the authorities.
The Legislative Assembly approved a moratorium of three non-extendable months, in sanctions, arrears, interests, fines or any other sanctioning disposition, related to the collection of the value added tax, which became effective last July 1.
Taxpayers qualified by the Tax Administration as large national taxpayers and large territorial companies are excluded from this moratorium, explains a statement from the Legislative Assembly.
In the context of a considerable fall in foreign investment in the sector in Costa Rica, the situation could be further complicated by the elimination of tax incentives that tax reform is bringing along.
Figures from the Central Bank of Costa Rica (BCCR) detail that after reporting $443 million in foreign direct investment in tourism in 2017, this figure decreased dramatically last year, registering only $23 million.
The VAT that will be gradually collected in Costa Rica over four years would put tourism businesses in a disadvantageous position, since they will have to increase product prices or reduce their profits.
The implementation of Value Added Tax (VAT) will be done gradually, from 0% in the first year, 4% in the second year, 8% in the third year and 13% from the fourth year, a situation that would make the operation of tourism companies more expensive.