Tax update: Key Amendments in the Regime Complementary to the Value Added Tax (RC-IVA)

Normative Resolution of the Board No. 102400000031 published on November 23, 2024

On November 23, 2024, the National Tax Service (SIN) issued the Normative Resolution of the Board No. 102400000031, which introduces significant changes to the tax regulations in force. This resolution specifically modifies the Normative resolution of the board does Not. 102000000025published on 18 September 2020, and also affects the Normative resolution of the board does Not. 101900000010, dated June 5, 2019. The objective of these amendments is to update and facilitate the fulfillment of the tax obligations of taxpayers and withholding agents in the context of the Regime Complementary to the Value Added Tax (RC-IVA).

Main points of Modification

The new resolution brings with it several key amendments that directly affect the tax procedures:

1. Amendment to Article 1 (Amendments to the RND No. 102000000025): Is amended in its entirety the text of Article 1, which sets the object of the resolution, including the regulation of the use of the application "MY BILLS" to the filing of the Affidavit of the RC-IVA. This amendment seeks to clarify and specify the scope of the regulations in connection with the use of digital tools for tax management.

2. Submission of the Form 110: According to the new paragraph I of Article 3, the passive subjects of the RC-VAT dependents must submit a monthly basis in the Form of 110 to their Withholding Agents. This form must be generated through the application "MY INVOICES", which simplifies the process of declaration and ensures that taxpayers comply with their obligations in a timely manner.

3. Use of the Applicative MY BILLS: Regulates the use of this application for the registration of invoices and the generation of the Payroll Tax V. 3, as well as for the presentation of the Affidavit of the RC-IVA. This includes the ability to submit the Form 110 online, eliminating the need to print documents in certain cases, which represents a step towards the digitalization and modernization of the processes of taxation.

4. Amendment of Article 4 (Generation of the Form 110 and presentation to the Retention Agent): Is amended in its entirety the text of Article 4, stating that the Form 110 must be submitted to the employer attaching invoices issued in modes of billing manual, prevalorada pre-printed or computer. In the case of the Form 110 contains only invoices issued in a form of online check-in, it will not be necessary to print the invoices, giving filed with the single act of declared through the system.

5. Custody Documentation: Article 5 provides that taxpayers must guard the Form 110 printed and signed, together with the invoices and equivalent documents original document, for the term of the limitation established by Law No. 2492. This measure seeks to ensure the transparency and the proper management of the documentation tax.

Groups Affected by the New Resolution

Resolution No. 102400000031 has a broad scope, affecting various groups:

• Natural persons in a Relationship of Dependence: Workers who are under a contract of employment and that they must comply with the tax obligations related to the RC-IVA. The resolution establishes clear procedures for the submission of their statements.

• Withholding agents: Entities or individuals that act as withholding agents of the RC-IVA, responsible to withhold and remit the applicable taxes to the tax administration. The current regulations provide guidelines on how they should manage these taxes.

• The Passive subjects of the RC-IVA: Includes direct contributors, professionals and trades that are made by the Tax on the Earnings of the Companies (IUE) and taxpayers of the Tax System Integrated (STI). The resolution seeks to facilitate your tax compliance through the use of digital tools.

The Application MY BILLS and their Relationship with the Affidavit of the RC-IVA

The application MY BILLS it is a digital tool essential to the contributors of the RC-IVA. Its main functions include:

• Invoice register: Allows taxpayers to correctly register the invoices and equivalent documents in support of your payments on account of the tax period to declare. This ensures that the information presented is accurate and adequately supported.

• Generation of the Form 110: Facilitates the selection of invoices and the generation of the Form 110, which is required for the tax return. This form must be submitted monthly to the Withholding Agents, which greatly simplifies the process of declaration.

• Online presentation: Taxpayers can file Form 110 through the enabled option in the SIAT in Line, which simplifies the process of declaration and reduces the need to submit physical documents in certain cases. This digitization is an important step towards the modernization of the tax system.

Lrelationship between the application MY BILLS and filing of the Affidavit of the RC-VAT is fundamental, since the use of this tool allows taxpayers to comply with their tax obligations more efficiently and effectively.

Conclusion

The Normative Resolution of the board does Not. 102400000031 represents a significant advance in the regulation of the RC-VAT, making tax compliance through the implementation of the application MY BILLS. The affect diverse groups, including employees and agents of retention, the resolution seeks to optimize the management of tax obligations. The use of digital tools like MY BILLS not only simplifies the process of declaration, but also promotes greater transparency and efficiency in the tax system. With these modifications, it is expected that taxpayers are able to meet their fiscal responsibilities in a more agile and effective, contributing to a tax system more robust and efficient.