The Dominican Republic introduced risk-based rationing of invoices in 2018. Invoices that the tax administration had approved but that businesses had not issued before May 2018 were declared void after this date, so that all VAT-registered taxpayers had to request approval for new invoices starting in April 2018. From there onwards, the tax administration rejected invoice requests or approved only a fraction of the invoices requested by businesses based on their tax compliance history. In the first phase of the reform, the tax administration’s response depended on compliance with filing and information reporting obligations. In the second phase of the reform, starting in January 2019, the response was also based on pending payment obligations, that is tax arrears.
Source IMF
