As top-tier taxpayers, it is important to know this Form 4418: Activity Verification to obtain document stamping, since it is part of the tax regulations when declaring the start of activities or modifying the structure of a commercial business, whose application is to avoid the stamping of non-existent transaction documents.
Continue reading so that you take this requirement into account in order to be legal with the Internal Revenue Service for the stamping of documents that generate the right to the Tax Credit.
What is Form 4418
Is he document available to First Category taxpayersto request the Verification of activity and address by the Internal Revenue Service.
With this previous step and according to the result of the verification, the Internal Revenue Service can issue the authorization for the business to stamp the documentationwhich will support the operations that are object of application to the VAT Value Added Tax and generate the right to Tax Credit through invoices, dispatch guides, credit and/or debit notes.
This procedure is carried out when the start of commercial activities is declared, also when a change of address of the parent company is made or when a branch office is opened and when a change of business is made, among other opportunities.
The Form 4418, consists of four partsbeing the first to make the verification request itself, there the specific data of the trade is placed.
The second partis for use by the Internal Revenue Servicewhere you must select from the proposed options the that identifies the reason for the verificationindicate the application notification number and mark the attached documents requested such as supplier invoices, lease or purchase-sale contract.
In the third part of Form 4418, we will find the Verification Resultit must be completed by the SII official who carried out the activity, placing the observations that he deems pertinent and clarify the decision of the result between Positive, Conditional Positive or Negative.
The fourth part of the Form, it will depend on the previous resultwell corresponds to the Verification of the Landthe information in this part is the notice given to the taxpayer, indicating the period between which it can be visited and the documentation to be presented.
Let us remember that the First Category taxpayers They are that generate income based on capitalas is the case of companies with commercial, mining and industrial activities, among others.
In the case of activities of a nature professional or profit-generating occupationsthey can stamp their documentation when their start of activities is authorized, locating them as Second Category taxpayer Y The verification of your activity and address is not obligatory or necessary.
These categories are assigned by the Income Law and a different tax is applied to each one.
The Form 4418 for the Activity Verification to obtain document stamping can be downloaded by the link.
What is it for
Activity verification is also known by its acronym VAT, its purpose is evaluate or review for its successful confirmation the declared economic activityin the documentation or records submitted by taxpayers and those who are registered at the Internal Revenue Service.
After satisfactory verification, authorize the taxpayer to stamp documents entitled to VAT tax credit.
How to complete form 4418
Filling out the Activity Verification request through Form 4418 is really very simple, it is only required to have the documentation where the taxpayer’s information is, such as its constitutive document or registration in the Internal Revenue System.
It must be presented by the legal representative in personin the Tax Service office that corresponds according to the previous address, if it is a change of address of the parent company.
In case of being a third party, you must present a notarized power of attorneywhere your authority to request the procedure is stated.
We must remember that Forms 4415 must be on hand in case of Start of Activities, although when completing form 4115 online, the option is given to request verification of activities automatically known as VIA, when inquiring about the need to stamp invoices.
Also have on hand Form 3239 for Modification or Update of the business structure, both forms may be requested.
Below is the information to complete Form 4118.
- Put the date of the day you make the request and the Rut number, if you already have it.
- In it point 1: Place the name of the Business or Company, as it appears in the Constitutive Document and indicate the name and RUT of the Legal Representative.
- Point 2: Detail the branch of activity or line of business.
- Point 3: Indicate in detail the address of the parent company and indicate the commune where it is located, the telephone number of the taxpayer or representative, and the Rut of the person who carries out the procedure. In case the business operations work on agricultural land, indicate the name of the owner
- Point 4: It is specific for taxpayers who market products, they must be marked with each other or not, depending on the situation of the possible inventory.
- Place the signature of the person carrying out the process.
- In the corresponding space, indicate details about the location of the parent company, use the map for clarity.
- In the last space, the Taxpayer or Legal Representative must sign.
What is Activity Check
With the verification of the activity or line of business of a first-category taxpayer, a evaluation of the information presented by the taxpayer and the data that is registered in the database of the Internal Revenue Servicewhose objective is the satisfactory determination, that the taxpayer will effectively carry out the activity that he has declared.
In the event that the result of the evaluation carried out by the Tax Service is not affirmative, an on-site visit must be carried out.
The situation could arise that the taxpayer is not present at the time that the Internal Revenue Service official is going to carry out the activity verification, for which reason he must leave a written record of his visit.
The taxpayer must request a new visit before the office of the Internal Revenue Service that corresponds to him according to his business address.
This new visit will be scheduled within thirty (3) business days from the day the request for a new visit is made for verification.
The activity verification request cannot be made via the internet, however, when the activity notification declaration is made on Form 4115, the system asks you about the need to stamp invoices, if you answer affirmatively, it will enter some other information and the activity verification request (VIA) will be automatically registered. ).
If this automatic verification is unsatisfactory or negative, the same system will inform you that you will be visited at your business address three days after this event, to carry out the Field Activity Verification (VAT).
As we commented in the description of Form 4418, in the third part, where the VIA Activity Check resultWe find that these can be:
- Positive Verification: the requirements are complete and the issuance or stamping of the documents that generate the right to a VAT tax credit is authorized.
- Positive Conditioned: the taxpayer is authorized to stamp limited or restricted documents that generate the right to a VAT tax credit or without being limited stamping, the visit is pending within a period of no more than sixty (60) days to carry out an Activity Verification in VAT Land, in addition to the presentation of other documents, based on the policies issued by the National Directorate in this regard.
- Negative: A field visit will be required to verify the activity, as the evaluation carried out does not generate sufficient confidence to the SII.
The VAT Field Activity Verificationcan return the following results:
- Positive: the requirements of the National Directorate are complied with, to authorize the taxpayer to normally stamp the documents entitled to VAT tax credit.
- Positive ConditionedIn order to obtain authorization for the normal stamping of documents entitled to VAT tax credit, the taxpayer is conditioned on the presentation of additional documentation that demonstrates the effective intention to operate according to the initially declared activity.
- Negative: the requirements to carry out the initially declared activity are not met, therefore the stamping of documents entitled to VAT tax credit is not authorized, and a new verification must be requested when the conditions for carrying out the activities declared by the taxpayer are completed.
If the request for verification of activity through Form 4418 is originated by changes in the taxpayer structure, it must be submitted as an attachment to the Form 3239if it is due to the start of activities with the Form 4115.
When the Internal Revenue Service notifies you about the Activity Verification visit, it will inform you about the precautions to keep in mind, including:
Supplier Invoices, Purchase/Sale Contract, Execution of Works and/or Services, Lease Contract, Acquisition of Machinery and/or facilities.
We hope the information has served you. Success!
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