SAP Document Compliance for Peru – What are IGV (VAT) detractions notifications and how do they impact your electronic documents?
Is the “detraction” a new tax?
“Detractions” refers to a mechanism to collect VAT Payments, similar to “perceptions” and “withholdings”.
How does it work?
When an invoice is created, the issuer (vendor) must analyze and calculate if the invoice recipient (customer) must carry out a IGV payment on their behalf (before paying the invoice). Unlike regular “withholding” scenarios, it is the vendor’s responsibility to notify the customer about the VAT withholding, including the amount. This information is also present in the electronic document.
When the customer pays for the invoice, also includes the supporting ticket information acting similar to a “withholding certificate”.
How is detraction notification executed?
Detractions notifications are present in the PDF as a label (explained in SUNAT catalogs) and also in the electronic invoice header.
How should be the notification calculated?
Since detraction calculation is largely dependent on the sales item (material or service), the calculation is part of the pricing, but not necessarily affecting SD subtotals or accounting.
Each sales invoice line item must determine if a detraction is required, using a condition. The condition will determine the percentage, e.g. currently there are materials and services requiring 4%, 10%, or 12% detraction.
At invoice header level the highest detraction percentage should be used, and the gross amount (net invoice value and all the taxes, etc. in Peruvian currency) should be used to calculate the detraction.
This is the information contained in the notification:
- Percentage: Maximum detraction calculated for an item (neither averages nor amounts used).
- Amount: Invoice Gross Value * detraction percentage.
- Reason: Code: Specified on SUNAT Catalog 54 and derived from material or service.
E.G. for amounts, supposing at least one item is affected with 12% detraction:
Net amount: PEN 1,000,00
VAT (IGV): PEN 180.00
Total (Gross) amount: PEN 1,180.00
IGV Detraction amount: PEN 141.60 à corresponds to 12% of total amount
What components are used in the electronic document at header and item levels?
At item level de SUNAT catalog 54 is used to determine the IGV detraction reason code. This is derived from the material or service (typically the material group “MARA-MATKL”), but the notification is only at header level, consider any item with the highest percentage in the document.
Is there any document available from SUNAT?
yes, main sources of information for SUNAT detractions are present here: http://orientacion.sunat.gob.pe/index.php/empresas-menu/regimen-de-detracciones-del-igv-empresas
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