Form 104 Update: Optimizing Your VAT Declaration

• Formulario 104 has been updated, affecting Value Added Tax (VAT) and Income Tax.
• Changes aim to clarify and improve tax declaration, allowing taxpayers to manage tax credits and deductible expenses better.
• Key updates for VAT are in these boxes:
• Box 565: VAT value not considered as a tax credit due to the proportionality factor.
• Box 624: VAT paid and not offset.
• Box 625: Adjustment of tax credit exceeding five years.
• A new question in the form determines if the taxpayer needs to register VAT values as a deductible expense in Income Tax.
• Accountants need to understand the new boxes and their application in tax declarations.
• Proper distribution of tax credit and inclusion of amounts as deductible expenses can optimize tax burden and ensure compliance with the law.
• It is important to be aware of the tax credit prescription deadlines and track them to avoid adjustments or penalties.
• Having an informed and prepared accounting team is crucial for managing tax obligations and optimizing tax situation.

Source: russellbedford.com.ec

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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