Is it worth paying an IVA off early?

Is it worth paying an IVA off early?

Deadline to pay vat after filing

Filing a return after the deadline has consequences. The penalty will depend on whether you file voluntarily or because the Treasury requires it. But also on the time you take to regularize the situation.

For late filing, you will be penalized. It will depend on whether you file voluntarily or because the Treasury requires it. But also on the time you take to regularize the situation.

If you do not file a tax return within the deadline, you will receive a notification from the Tax Authorities requiring you to file it or the justification for not doing so. Normally, if you are obliged to file a tax return and you do not do so, the Tax Administration will be notified within a period of less than 6 months.

A penalty procedure will also be initiated. That is, you will have to pay the amount of the return, the late payment interest and the corresponding penalty that can range from 50 to 150% of the total debt.

On September 1, you pay the 1,000 euros and file the tax. As only one full month has elapsed since the end of the established deadline, the surcharge for late filing that you will be notified by the Tax Authorities will be 2% of 1,000 euros (1% + 1% additional), i.e. 20 euros.

Fine for not paying VAT on time

When the taxpayer is audited within the tax procedure, there are steps to comply with so that the tax returns can be finalized. The taxpayer has the possibility of voluntarily correcting the returns and thus pay a fair value as a result of the audit.

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These articles of the Tax Statute (E.T.) related to the correction of tax returns, allow identifying the type of correction and the amounts to be paid for them, as well as the steps to be followed in cases where there is a decrease of credit balances.

Subsection added by Article 46 of Law 49 of 1990. When the higher amount to be paid, or the lower balance in favor, is due to the rectification of an error arising from differences of criteria or appreciation between the tax offices and the taxpayer, related to the interpretation of the applicable law, provided that the facts contained in the return subject to correction are complete and true, the correction penalty shall not be applied. For such purpose, the taxpayer shall proceed to correct, following the procedure provided in the following article and explaining the reasons on which it is based.

Condemnation for omission of withholding agent

That is to say, if the VAT Reputed that you have generated in your business (the VAT that you have charged in each one of your Sales Invoices) is higher than the VAT Supported (the VAT that you have paid in each one of your Purchase and Expense Invoices) you will have collected a VAT surplus that you will have to pay to the Tax Agency.

On the other hand, if the VAT borne is greater than the VAT charged, the result is negative. That is to say, you have paid more VAT than you have collected, and therefore, there will be two possibilities for you to recover this VAT from the Tax Agency: The Refund or the Compensation with the following months.

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If the quarterly VAT form 303 is negative, and therefore, the input VAT is greater than the output VAT, with the request before the Tax Agency for the VAT refund, we are requesting that they pay us economically the difference that exists in our favor.

As in the previous case, if the result of form 303 is negative, and there is a positive difference in our favor, by requesting the VAT compensation to the Tax Agency, we are asking them to compensate the amount for the following quarter.

What happens if vat is not paid on time in colombia?

A dormant company is a company that does not exercise any economic activity. It communicates its cancellation of its activity to the Treasury and remains in a kind of lethargy waiting to be reactivated or liquidated.

In most cases, the company is left inactive or “dormant” in case the same or another activity can be reactivated in the future. This avoids the costs of dissolution and incorporation of a new entity. It also avoids the feeling of failure that can result from closing a company in which so many efforts and illusions were put.

And it is easier to leave a company inactive than to liquidate it. Dissolving and liquidating a company is not free. It happens as in the burials, the costs shoot up.    It is necessary to carry out a multitude of formalities:

Then it must be communicated to the Treasury, presenting a modification in the census declaration of model 036. It is necessary to mark the box 140 “To stop exercising all the managerial and/or professional activities (legal persons and entities without dissolution. Inactive entities)” Also the box 141 “Effective date of the cessation” will be filled in.

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