With data or the end consumer? If the purchase is less than $50, there are these two options for the invoice, and a few people opt for the second one so that they don’t have to wait longer at the counter with their name, ID number and email. Furthermore, because s tax reform From 2022, deductions have fallen and invoices can be presented for only $5,344 of expenses to achieve a reduction in income tax payments.
With the new tax reform proposed by the Government, these deductions will increase again, and with it the need for more invoices to support these taxpayer costs. The reason for this is that the draft family law that the Government sent to the National Assembly proposes that the deduction of personal expenses be up to 20 basic family baskets, or up to 15,294 dollars, depending on family obligations.
Income tax: now the reduction will depend on how many family obligations the taxpayer has, not on salary
It was just one of the the impacts of the current scheme that the Chamber of Commerce of Quito identified: because there are no deductions, illegality is encouraged, people stop asking for bills; So instead of promoting the economy and commercial activation, we are producing deactivation and disincentive, said union president Mónica Heller.
How much income tax will you pay if the tax reform is implemented?
Regarding this new change around income tax, here’s what you should know about invoices:
What is the minimum amount from which each company or merchant must issue an invoice? For example, in cafeterias or stationery stores, they have to issue a receipt for cents?
The IRS states that the issuance of sales receipts is mandatory from $4; however, if the customer requests an invoice for less than $4, the issuer is required to supply it.
What is the point of every transaction of $50 and above having to be with consumer information?
Allow the client to have their information so that they can use this voucher to support costs or expenses within their tax returns. Sales invoice information enables the tax administration to obtain information from consumers for control purposes.
What benefit does the client get from asking for an account with his information, rather than as a consumer in general?
Source: Eluniverso
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
