In accordance with Article 8 of the Income Tax Act, [in Spanish: la Ley de Impuesto Sobre la Renta], subsection r: “Income Tax can be deducted when losses are incurred due to the destruction of assets, because of fire, and in detriment to the company”, provided that they are duly verified, that is, you have valid documentation that verifies the destruction, (from obsolete inventory), robbery or theft, and for the part not covered by insurances. In these cases, supporting documentation must be provided exactly as it would be from the certification from an independent certified public accountant through which the cost of the merchandise would be assessed, and therefore, the loss to be acknowledged.
Unexplained shortages are a different case, since in these cases inventory shortages must be assessed on the normal sales price of the merchandise and not on the acquisition price, that is, it must be presumed that the merchandise was sold at a normal sales price and was subject to a VAT debit, as well as a possible profit for the purposes of a Tax on Profits, as established in Ruling DGT-R-029-2018.
Amendments to electronic receipts
On June 12, 2023, the Gazette published, through Ruling MH-DGT-RES-0013-2023, some amendments to the General Ruling on Technical Provisions of Electronic Receipts for Tax Purposes [in Spanish: la Resolución General sobre las Disposiciones Técnicas de los Comprobantes Electrónicos para Efectos Tributarios], N° DGT-R-033-2019, as well as the annexed documents and structures 4.3.
Included in these changes is the inclusion of the conditions of sale: “VAT credit note up to 90 days”, Code 10, for sales taxed or sales on credit, and “Payment of VAT credit up to 90 days”, Code 11, as receipt of payment. In addition, the field must indicate the type of reference document that the electronic document is paying.
The foregoing applies to the sale of goods or to the provision of credit services that contributors perform in their capacity as independent workers, providers of professional services, micro, small, and medium-sized companies or producers registered with the Ministry of Economy, Industry, and Commerce, or the Department of Agriculture and Livestock. The contributor must pay the respective tax no later than 90 days after the issuance of the electronic invoice, or at the time of receiving the payment, pursuant to what is established in Article 27 of the Value-Added Tax Law.
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