Moratorium for VAT Penalties Approved

The CR Congress approved a moratorium for the penalties to be imposed for non compliance with the new VAT imposed with the recent tax package.
Please note that the moratorium is applicable only to the penalties to be imposed and the administrative proceedings (Proceedings by Hacienda against the business or taxpayer) for non compliance. The businesses and persons liable for the monthly filings of the VAT must still comply with the filings and with the corresponding payments of the taxes.

The intention of the government is to allow a period of three months for people to get adjusted to the new obligations. As everyone knows, this new tax (among so many other items in the new tax package) is causing a lot of headaches to the people at large, and unavoidably, there will be mistakes. Thus, the three month period is to permit some leniency for some non compliance.

Upon the expiration of the three month period, Hacienda will be able to initiate any proceedings and impose the corresponding penalties arising out of non compliance. The three month period will start on the date of the publication in la Gaceta.

Please remember:

• You still need to do the filings.
• The moratorium is only for the implementing penalties and proceedings.
• It is only for three months.

This is the text of the law for your reference.