The invoice is a document that identifies you as the owner of a good or beneficiary of a service.
Due to habit or ignorance, Ecuadorians tend to receive invoices where the name of the client says final consumer, although they do not estimate what this entails.
An invoice is a document that allows the client to certify that he made the transaction in a local and in case of presenting a replacement, it will support the claim. In several businesses it is indicated that no change is made if the invoice does not identify the buyer.
Article 1 of Regulation of sales vouchers, retention and complementary documents establishes that the sales receipts authorized by the Internal Revenue Service (SRI) are invoices, sales notes, settlements for the purchase of goods and provision of services, tickets issued by cash registers, tickets or tickets to public shows and other documents that are indicated in the regulation.
Who wins and who loses when we ask for an invoice under the name of final consumer
Jair Reyes, public accountant, explains that article 19 of the regulation itself establishes the information that must be included in it, which are: name or company name of the seller, RUC of the merchant, data such as location, telephone numbers, emails, serial number of the SRI and effective date on physical invoices.
“Both the invoice and the sales note are legal, the difference is that the sales note does not tax VAT because they are under the RISE regime, of those people who have a RISE then they pay a tax according to the level of sale per month ”, he points out.
Why do businesses ask if they want the invoice as a final consumer?
Reyes states that Article 19 itself establishes that invoices can be issued as a final consumer if the value does not exceed the 200 dollars.
“What is the matter with these final consumer invoices? For natural persons as well as for companies these documents or acquired expenses are not deductible for any type of tax”, He expresses.
He adds that businesses often do it without the buyer’s personal data. because it is faster to emit and that the vast majority of the population is not required to pay taxes.
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“Seeing that the law is constantly changing in Ecuador, I think it would be for people to adopt as a culture to ask for invoices with data,” he says.
The specialist points out that it is recommended that companies or micro-businesses have a suitable professional to advise and make the statements properly since doing so with someone who does not know the subject can generate fines that can lead to the bankruptcy of the business.
How does it benefit me to request an invoice with data?
The external financial auditor points out that although a natural person not obliged to keep accounting, whose income does not reach the basic fraction determined to declare income tax, does not have a benefit for the deduction of taxes, there are aspects that may be useful. .
If you exceed the basic fraction to declare income tax, you must have invoices with your data in areas such as health, education, food, housing, clothing; You should have these documents with your name to have deductible expenses. “If you have a final consumer invoice, even though you have purchased a good or service within these items, you will not be able to deduct it, therefore you will have to pay the tax on the taxable base of your goals because you will not have expenses to discount ”.
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It also clarifies that the elderly have the benefit of the VAT refund that they paid in purchases of essential goods and services such as clothing, housing, health, food, education, communication, culture, sports and transport and mobility. The monthly amount of the VAT refund is $ 96 in 2021, is indicated on the SRI page.
In the case of people with disabilities, a value is returned according to the degree they have registered, starting from 30% to 100%.
Reyes adds that requesting invoices in his name will allow him create a credit history, an aspect that young people neglect and that makes it difficult for them to access credit. This is one of the aspects that financial institutions take into account when granting these products.
“Taking bills on your behalf creates a credit history. As a person despite not reaching that (income tax base) I have a credit history. It is highly recommended that young people who are beginning to generate their first income and have goals and since they do not have a credit history, the first thing that financial institutions or commercial premises are going to review the level of purchases they have had … It is always recommended ask for an invoice although it does not affect you tax if you do not reach the income, but it gives you benefits elsewhere “, he points out.
If the invoice has a misspelled name, is it still valid?
The accountant specifies that if the invoice has the wrong name due to a spelling mistake made by the customer, there would be no problem for the validity of the document since it should include the identity card or RUC number of the person who made the purchase.
However, if the name is wrong and does not correspond to the identification number, you will have problems at the time of deduction. (I)
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