11 February 2016 Tax credits for VAT generated in 2012 are expiring soon in Guatemala Exporters and taxpayers selling goods and services to tax-exempt entities should review their tax credits for value-added tax (VAT) that was generated in 2012 in Guatemala because, under Decree No. 4-2012, those credits will expire in 2016. Exporters and taxpayers selling goods and services to tax-exempt entities may request a reimbursement in cash of the tax credits for VAT directly related to those activities on a monthly, quarterly or semi-annual basis, depending on the elected regime, from the Tax Authorities. On January 26, 2012, Guatemala enacted Decree No. 4-2012, which modified Section 47 of the Tax Code to limit the right to request the reimbursement to four years, beginning on the date on which the taxpayer is entitled to request the reimbursement for the first time. The Decree does not limit the right of taxpayers to offset tax debits generated by local operations with tax credits for VAT that were not requested for the first time in four years and accumulated. Therefore, such credit may be carried over in the monthly VAT reports until it is depleted.
Document ID: 2016-0300 | |||||||||||||||||||||
