14 Jan Did you pay more than the bill? Request a refund

Taxpayers can request from this month the refund of the withholdings of the main taxes paid in 2019. Technology facilitates the process. However, it does not detect if there would be a credit balance, so it is your responsibility to know your accounts.

The tax authority allows taxpayers to appeal for their right to execute a tax refund in two cases. The first, if there was an undue or excessive payment, beyond what is established in the legal regulations or that they were paid without the obligation to do so. The second, due to legal provisions to favor certain economic sectors or priority attention groups. In each case, according to or provided by the Internal Revenue Service (SRI), there is a presentation format for the request for the return request. The request can also be made through the window, in which case it is necessary to present the letter or the requests arranged for each case, at the SRI Secretariat windows.

1. Income Tax.

The taxpayer can request a refund of this tax when the withholdings at source have been higher than the tax caused. Before starting the refund process, it is mandatory to make the Income Tax declaration.

Process:

• Fill out form 701 for “Administrative claim for improper payment” or 701-A for “Request for refund of overpayment”.
• Attach other requirements: copies of bank account, identity card, ballot, withholding vouchers.
• For persons obliged to keep accounting: financial statements, ledgers of the withholding accounts, document signed by the accountant, details of the withholdings in magnetic medium.
• Once the request is received, the SRI has 90 days to respond.
• If affirmative, the bank transfer is made in the following weeks, according to the financial availability of the Ministry of Finance.

2. Value Added Tax (VAT)

The taxpayer can request a refund of this tax when throughout the year he has paid more VAT than he has received. There are 14 types of VAT that can be returned:

• Older adults
• People with disabilities
• Exporters of goods
• Foreign tourists
• Use of electronic means of payment
• On withholdings at source
• Direct suppliers of goods exporters
• GAD’s and public universities
• Local purchase of chassis and bodywork
• Airlines, for fuel acquisition
• Diplomatic missions
• Inbound tourism operators
• Executors of international agreements
• Others contemplated by Law

3. Foreign Currency Outflow Tax (ISD)

• Taxpayers can request a refund when they paid an excess tax due to their payments for purchases abroad.
• Both the procedure and the requirements are very simple. In the first case, you only have to submit the request for refund of the tax credit generated by the ISD.
• And to the request, attach the original identity card and voting ballot, for natural persons; scanner of the appointment of the legal representative, for legal entities.
• The SRI analyzes the process, taking time to legitimize it, after which it notifies the taxpayer.
• If approved, the amount is refunded through a regular credit note.

At UHY we are experts in this matter, we can help you with the forms for the return of withholdings. Write to our WhatsApp.