The timely issuance of fully and accurately completed documents for purposes of maintaining control over El Salvador’s tax on the transfer of movable goods and the rendering of services (VAT) constitutes one of the most significant formal tax obligations, since formal noncompliance may have substantive income tax implications for taxpayers. In the event of formal noncompliance regarding the issuance of such documents, taxpayers not only may be subject to the various penalties specified in article 239 of the tax code (regarding noncompliance with the obligations to issue and deliver documents) but also may fail to comply with their substantive income tax obligations if the required payment of taxes based on the documents issued is not made in the appropriate amount.
Source Deloitte
