Form 120: Format, Filling and MORE

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The Form 120 It is a document that has the character of a sworn declaration and is used to tax the value added tax (VAT) of a natural person or a legal personality. It should be noted that this procedure is governed by the Law 125/91 of Paraguay that establishes the guidelines on tax matters.

Through this article, we want to provide you with the most information about this important procedure, so that you can resolve your concerns and learn about the procedure for its management. In this opportunity we will explain to you what the format of the Form 120, what are the forms in which it should be presented, what is the usefulness of the document and what body certifies it.

Find out here everything you need to know about the Tax Return of Value Added Tax In Paraguay!

Form 120 format

To obtain Form 120 for the VAT declaration, you can click on the attached file that we leave you below. If you want to download it in PDF format on your computer, select the «Download» option that has an arrow icon pointing down.

You can also print the file directly from here, by pressing the button shown in the upper right of the screen, which shows a printer icon. In this way you can have the physical document and start filling it out in handwritten form.

If you are going to complete the form in handwritten form, you must do so in capital letters. Make sure there are no smudges, erasures, or amendments on the document.

Completion of Form 120

This form can be completed both manually, writing legibly each of the requested data and marking the corresponding boxes with «X». Or it can also be filled out through the computer, through transcription. In the latter case, the document must be printed when filling is complete.

Regardless of the method, to complete the Form 120, it is required to cover the six (6) sections it contains, which are called “headings«. Initially, a box is presented for the collection of document identification data.

Such as: RUC number, company name or names and surnames, type of declaration and its corresponding number, and the respective fiscal period. Regarding the types of affidavit, you must select with an «X» the box that suits your need, among these options that we mention:

  • Original.
  • Corrective.
  • With the character of cessation of activities, closure or definitive closure.

Form headings

In the first item, the taxable amounts associated with the disposal of goods or services corresponding to the period declared are placed. At this value, it is necessary to calculate the VAT on debit for both 5% and 10%. These items include product exports and price adjustments for returns or discounts.

The second item is associated with the sale of goods or services from the last six (6) months up to the declared period. The amount to be calculated here is cumulative, and the sales taxed in the domestic market and exports are considered.

The third item corresponds to all local purchases made and imports included in that declared period. The items included in this section are tax credits taxed in the domestic market and those attributable to price adjustments due to returns or discounts. In this case the taxable amount is calculated for 5% and 10%.

On the other hand, in the fourth item, the amounts corresponding to the balances in favor of the taxpayer for operations in the domestic market and the balances in favor of the treasury are indicated. As for the fifth item, this refers to the settlement and the balance of the tax.

Where you can mention the fines for non-compliance in the payment of the tax, the computable withholdings and the balances to favors, both of the taxpayer and of the treasury itself. And finally, the sixth item, for its part, is the data referring to purchases related to operations exempted or not reached by the tax, within the period that is declared.

Taxpayer declaration

To finish filling the Form 120, the taxpayer must affirm in the capacity that it is responsible for, that all the information provided through this document is completely reliable and correct. Committing in this way to assume the legal consequences that are given in case of false information.

The document ends with a blank space for the taxpayer to place their signature, and a box where the institutional seal that certifies the receipt of the return and the corresponding payment of the value added tax will be framed.

If you wish to have a detailed explanation of how to complete each of the fields contained in this form, you can go to the SET website and download the Instructions for Form 120. In this way you will access the PDF format of this document.

Forms of Filing Form 120

To present the Form 120, there are three (3) options. The first is online through the web portal of the Undersecretariat of State for Taxation (SET). It should be noted that to be able to do it in this way it is necessary that the user has an account on the website and the corresponding access code.

The second option to deliver this statement is through a magnetic storage medium, that is, cassettes, audio tapes or hard disk. This magnetic medium must be produced by the software entitled «Taxpayer Module», which is a system authorized by the SET body for this type of tax return.

This software can be downloaded directly from the website of the Undersecretariat of State for Taxation, where you can enter through this link. It is important to mention that when delivering the magnetic medium, it must be accompanied by two (2) photocopies of the Form 120 printed in physical, letter size.

Finally, the third option is the most conventional, and is to present the printed format on sheets of paper (in physical form). For this, it is necessary to consign the original document and the duplicate of it directly in the agencies of the Undersecretariat of State for Taxation.

What is it for?

The Form 120 It is used by both natural persons and legal entities. Its purpose is to present the sworn declaration of the value added tax (VAT) levied by the citizens obliged to make this payment. This tax is derived from commercial activities carried out by taxpayers.

All companies or personalities that carry out profit-making activities are obliged by tax law to declare the value added tax and pay the taxable amount to date. However, there are some exceptions to this rule, for exempt taxpayers for specific reasons.

The usefulness of this document is that by this means, the user is provided with the calculation of the tax levied in the fiscal period that he declares. Since it provides the taxpayer with a standard format of the points that must be taken into account when complying with this social obligation.

Undersecretariat of State for Taxation (SET)

The Undersecretariat of State for Taxation (SET) is a public organization designed to administer the resources of the Paraguayan State in tax matters. Among its predominant functions is the collection of taxes through collection from taxpayers.

Likewise, it is in charge of proposing the corresponding legal framework and ensuring the monitoring of tax regulations. Through the imposition of sanctions for acts of evasion and non-compliance with the payment of taxes. Therefore, it promotes commitment and punctuality in the payment of these social obligations.

If you wish to make inquiries or receive technical assistance directly with the SET, or simply leave your comments and suggestions, you can do so through this link. Here you must put your first and last name, email and the reason for your inquiry. Automatically the message will be delivered to the agency and shortly, one of the customer service agents will be answering your application.

In the SET web portal, you will find a section called “Contact Us«, Which shows a list of agencies located nationwide. You can check here the contact telephone number, the address of the agency and the opening hours.

What is Form 120?

The Form 120 It is a document that serves to present before the Undersecretary of State for Taxation the affidavit of the taxpayers subject to the payment of the Value Added Tax (VAT). It is a form that covers aspects related to commercial activities destined for profit (sales of goods or provision of services).

By means of this document, the taxpayer will be able to comply with the timely payment of their tax obligation and have a detailed record of it. It is essential that all companies or natural persons that carry out activities that require them to keep an accounting periodically present this document.

As you have come this far, now you know much more about this procedure. We appreciate that you choose us as your first option to make your inquiries and inform you of the procedures that interest you. We hope that the information that we have presented to you today has been of great use to you. Do not forget to recommend us to your friends and acquaintances.

What are you waiting for to declare the Value Added Tax (VAT) of your business through the Form 120?

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