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ARTICLES

LEGAL RESOURSES

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    • ARTICLE 1A: SUBJECTS OBLIGED TO RETAIN THE TRANSFERRED VALUE-ADDED TAX (VAT)

    Taxpayers who are placed in any of the following cases are obliged to withhold the tax that is transferred to them (RLIVA: Art. 22B):

  • They are credit institutions that acquire goods through settlement or judicial or fiduciary adjudication.

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  • Be legal entities who:

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  • Receive independent personal services, or temporarily use or enjoy goods, provided or granted by individuals, respectively.

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  • Acquire waste to be used as an input for their industrial activity or for their commercialization.

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  • Receive ground transportation services of goods, provided by individuals or legal entities. (RLIVA: Art. 4)

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  • Receive services provided by commission agents, when they are individuals. (RLIVA: Art. 35)

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  • They are individuals or legal entities who acquire tangible assets, or use or enjoy them temporarily, who alienate or grant residents abroad without a permanent establishment in the country.

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  • They are individuals or legal entities with business activities, who receive services through which they are made available to the contracting party or a related part thereof, personnel who perform their functions in the contractor's facilities or a related part thereof, or even outside of these, whether or not they are under the direction, supervision, coordination or dependence of the contracting party, regardless of the name given to the contractual obligation. In this case, the withholding will be made for 6% of the value of the consideration actually paid.

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    The individuals or legal entities who are obliged to pay the tax exclusively for the importation of goods shall not carry out the withholding referred to in this article.

    Those who make the withholding referred to in this article will replace the alienating, service provider or grantor of the use or temporary enjoyment of goods in the obligation to pay and payment of the tax.

    The retainer will withhold the tax at the time it pays the price or the consideration and on the sum of the amount actually paid and will pay by declaration in the authorized offices, together with the payment of the tax corresponding to the month in which it carry out the withholding or, in the absence, no later than the 17th day of the month following the one in which it had made the withholding, without crediting, compensation or any decrease being made against the payment of the withholding.

    The Federal Executive, in the regulation of this law (RLIVA: Art. 3) (RLIVA: Art. 4), may authorize a withholding less than the total tax caused, taking into account the characteristics of the sector or the productive chain in question, the control of compliance with tax obligations, as well as the demonstrated need to recover with greater opportunity the creditable tax.