Form 701 – Return of Value Added Tax

Have you exceeded in terms of paying your taxes? Do not worry, you only need to fill out form 701, in this article we will explain everything about this procedure so that you can do it in the easiest and most correct way possible. I hope this information is very useful to you!

Value Added Tax

The Value Added Tax, also called Tax on Lower Value and Value Added or Value Added Tax, abbreviated with the initials VAT, is a tax on consumption, that is, subsidized by the consumer as a regressive tax; This has been awarded in numerous countries, and widespread in the European Union.

The Value Added Tax is an indirect tax, which means that it is not collected by the treasury directly from the taxpayer, instead, it is collected by the seller as soon as a commercial transaction takes place, whether it is a transfer of goods or a provision of services.

The intermediary merchants have the right to refund the VAT that they have paid to other merchants that preceded them in the succession of commercialization (tax credit), deriving it from the amount of VAT charged to their customers (tax debit), to later credit the balance to the treasury.

Final consumers are obliged to pay VAT without the right to refund, which is moderated by the treasury, putting the company in the obligation to deliver proof of sale to the final consumer, in the same way, copies of the themselves to accounting in the company.

You will be exempt from paying value added tax when income is obtained from the following services:

In addition, when independent personal services are received, or goods provided or granted by individuals are temporarily used or enjoyed, the obligation will be to reserve the tax that is transferred, in the same way, when services rendered are received. by commission agents while they are natural persons, or when land trucking services of goods are received, provided by natural or legal persons.

Likewise, instead of occupying the withholding with respect to the aforementioned, two thirds of the tax that is actually paid may be withheld, except that they are land trucking services, in which case, it would be a withholding of 4 % being applied to the value of the consideration effectively cancelled.

Those withholdings that are made must be delivered no later than the 17th of the month following the month in which said withholdings were issued, without any accreditation against them.

The payment of the entire amount must be made by means of an electronic transfer carried out on the portal of the authorized credit institutions, presenting in turn, in advance, a declaration in the Declarations and Payments Service (referenced payment).

Form 701

This is a form that is completed when the amount in terms of tax payment is exceeded; The same, once filled with the data that is requested in a truthful manner, must be delivered to the SRI, acronyms that correspond to the Internal Revenue Service. This was born on December 2, 1997, having its bases on the principles of justice and equity, as a response to the high tax evasion, caused by the almost total scarcity of an adequate tax culture.

Since it was created, it has been characterized as an autonomous institution in terms of determining its policies and management strategies, which have allowed decision-making to be managed in a balanced manner, with transparency and firmness, which causes the Policies are applied transparently, as is tax legislation.

Within the last few years, a considerable increase can be seen in terms of tax collection. Between the years 2000 and 2006, a figure collected of 21,995 million was reached; while in the period between 2007 and 2013 the collection tripled, exceeding 60,000 million dollars.

The figures reached by the SRI have been produced by the effectiveness in terms of management and management of the institution, not by implemented tax reforms, in addition to improvements in advanced technology systems, increase in innovative products, among which can be mention Electronic Billing, mobile SRI, online services, reduction of indirect costs to citizens and the strengthening of the tax culture.

The institution is identified under the slogan of Doing good to the country!, since 2007, being the insignia of permanent commitment against evasion and deplorable tax practices, in addition to the pursuit of continuous innovation in terms of the benefit of both taxpayers like the country

Form 701

Good tax management in Ecuador has generated that the country can emerge in its economy and provide its inhabitants with greater comforts, which in turn, causes them to be motivated to adequately pay taxes at the time and amount that correspond to it

Learn more about Ecuador

Ecuador is an American country that is located south of the aforementioned continent. It demarcates borders to the north with Colombia, to the west with the Pacific Ocean, and to the south and east with Peru. Its capital is the city of Quito, being this the most populated in the country.

Spanish is designated as the official language of the nation, which is spoken by 99% of the population, however, you can also find thirteen other languages ​​of indigenous origin, among which Kichwa and Shuar stand out.

When the year of 2018 arrives, the Human Development Index is positioned in the mentioned country as «high», which places it worldwide in position 81, close to China, and in terms of Latin America, it ranks a few positions ahead of Peru and Colombia.

Below we will present some information that you may not have known about the American country, perhaps it will even motivate you to make tourist trips to this tropical destination.

Thanks for reading us! We hope the information is useful to you.