If you want to know about the VAT Form D104, read this article, which will undoubtedly provide you with some important and forceful information regarding this format.
Taxpayers who sell products and services in Costa Rica must comply with the essential requirement of making the Declaration and sending it to the General Directorate of Taxation (DGT) of the Ministry of Finance through the Virtual Tax Administration (ATV) system or platform.
This form must be submitted as established by the Law for Strengthening Public Finances, on the 15th of each month with the declaration of the previous month. Read on and learn more about this VAT form D104.
VAT Form D104 Format
The VAT Form D104 Format has several sections to be filled out properly.
Initially, you must indicate the period to be declared and the corresponding identification. Then, go on to specify the Sales of the period according to the format, also, indicate the purchases made and the imports.
Finally, there is the section on Settlement of the tax debt and validate the calculation.
How do I fill out the VAT Form D104?
To make the correct completion of the VAT Form D104, you must follow the instructions outlined in this section.
Registration in the ATV System
For registration you must do the following:
- Must do the registration to the ATV System entering the web portal of the Ministry of Finance of Costa Rica.
- Enter section Most used services and press the ATV image.
- It is necessary to have the identity card and the password to enter the ATV system, also, to have the Virtual Smart Card that the platform generates when making the Single Tax Registry (RUT), then press Continue.
Form Selection
For the selection of the form you must:
- It will happen select the form.
- Press Declarations, It is located in the top menu.
- Then, you must click on the option that says File Tax Return.
- Next, the menu is displayed and it corresponds to you to select option D-104-2 Affidavit of Value Added Tax.
- Likewise, you must indicate the period (2020) and the month of the return you are going to submit.
- Press the button that says Fill form.
Economic activity
You must then indicate the economic activity:
- The system will show you a list with economic activities registered with the General Directorate of Taxation (DGT).
- Must do the selection of the alternative that generates income and sales. As an example: furniture making, making sweets and chocolates. You can do the list query here.
- In the case of having other types of economic activities that are not registered, you must do so before in the Single Tax Registry. If you have several registered activities, then you must complete and validate each of them in the form.
Sales Information
- Then you need to register the sales information.
- You must make the report of the taxpayer’s sales, if these transactions pay the 13% rate it corresponds to mark the alternative Yes, in the section of Subject Sales (tax base).
- The system displays the different VAT options with rates of 1%, 2%, 4%, 8% and 13%. The 1% and 8% rates do not apply in the first year.
Purchasing Data
You must make the declaration of the purchases made in the period. If you have purchases that allow you to deduct part of the tax, you must select the box Yes Purchases entitled to a tax credit.
If you made purchases and paid 13% of the Value Added Tax VAT, you must choose the alternative Yes Purchase of local Goods and Services used in subject and non-exempt operations.
Immediately, the form displays a table in which you must enter the amounts of the products or services purchased to generate the economic activity.
If goods were imported from abroad and the purchases do not give the right to a tax credit. Then go to the consolidated and press continue.
Consolidated Sales
In this section there is a table of the sum of sales for the period for each of the economic activities carried out by the company or person.
Consolidated Purchases
In this section is the sum of the purchases you made in the period for each of the economic activities that you are going to declare. Likewise, information on total tax credits.
Tax credits
Where the tax credits are recorded. The taxpayer must indicate if he had exempt sales or with differentiated rates. Then you need to press the button continue.
Determination of Tax
This section shows the tax charged for sales and the tax that was paid for purchases. Then press Validate.
Tax Debt Settlement
In this section you must indicate the withholdings for tax payments, the positive balance from previous periods or request compensation if you have credits in your favor. In this way:
- Then you must click on Validate and immediately the form calculates the total amount of tax to pay and the corresponding interest for the period.
- Subsequently, you must click on the alternative Present where a window is displayed with the question Do you want to file the Declaration? And the options Accept or Cancel.
- If you press Accept, the process to present the Declaration concludes.
- The process must be repeated again the first 15 days of the following month.
What is the VAT Form D104 for?
The VAT Form D104, is a format that It is used to make the Sworn Declaration of the General Sales Tax-Settlement by the traditional system.
It is a form that allows to make the monthly declaration of VAT of the companies that carry out economic activities of exchange of goods and services.
This form or Affidavit of Value Added Tax VAT, is in the ATV System and must be presented every first 15 days of the following montheven when it has not made any sale of goods or provided any service.
Who Issues It?
The Form D104 of the Value Added Tax (VAT), is a format developed and issued by the Tax Office of the Ministry of Finance of the Republic of Costa Rica.
What is it?
The taxpayer has the virtual Tax Administration (ATV) site that corresponds to the General Directorate of Taxation of the Ministry of Finance of the Republic of Costa Rica, where tax returns are prepared, through the forms.
The General Sales Tax Tax Return D104 is a general sales tax. It is a tax that directly affects the added value in the sale of merchandise and also in the provision of services.
Law No. 6826 dated November 8, 1982 and its respective reforms regulates this tax.
The taxpayers of this tax are those mentioned below:
- The natural persons or legal persons, either in fact or in law, both public and private who carry out the activity of sale or provision of services.
- Likewise, any type of person that carry out activities of imports of goods.
This General Sales Tax is made on the D104 Affidavit of general sales tax.
The calculation of the amount to be paid for this tax is determined by determining 13% of the net price of the sale. In addition, specific consumption taxes are included if the goods are subject to them.
Recommendations before making the VAT Form D104
Before enter the portal and fill out the form, the following is suggested:
- Have the total sales or income for the month to be declared and duly separated by economic activity.
- Likewise, having the total purchases of the month to be declared, according to the economic activity, according to whether they are goods or services and the VAT rate.
- Validate your business activities that are updated in the Treasury ATV system. Check if you should delete or add, do it in the Single Tax Registry tab.
- Remember that you must file the D104 VAT declaration every month, even if the sales are zero for that month.
- The currency is colones Costa Ricans.
- If you receive income in dollars or any other currency, use the amounts in colones according to the exchange rate that you used at the time of invoicing.
- Has to round the amounts to be declared, the figures are expressed without decimal numbers.
You finished reading this very interesting article and you know much better how to fill out the corresponding VAT Form D104. You no longer need further advice, but over time it will be easy for you to make the monthly statement.
For more information, check the website of the Ministry of Finance and clarify any questions or concerns.
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