New Jurisprudence on the Purchase Book: A breather for tax credits
New Jurisprudence on the Purchase Book: A breather for tax credits
Recently, Cassation Ruling No. 18629-2023, which was published in the "El Peruano" Official Gazette on February 13, 2024, brought important news for the business and taxation fields. This ruling sets out that the late recording of payment vouchers in the electronic Purchase Book does not affect the right to use tax credits from transactions subject to Value-Added Tax (VAT).
It is essential to remember that, to be able to use a tax credit, it is necessary to record payment vouchers in the Purchase Book within the month of their issuance or within the following twelve months.
The referred Cassation ruling acknowledges the limitation of the electronic Purchase Book, which does not allow taxpayers to record an omitted payment voucher within 12 months of its issuance in a Purchase Book that has already been declared for a specific month. However, said ruling suggests a solution: using code 7 to add payment vouchers, referencing the months in which the respective tax credit should have been applied (i.e., any of the 12 months counted from the issuance of the payment voucher). Although the definition of such code in current regulations does not allow this (which is why the limitation has always existed), this jurisprudence enables the use of this code for such purpose.
It is pertinent to remember that another Cassation Ruling, No. 16618-2023, has set out that cassation rulings create a legal precedent that must be complied with by the judicial bodies and the public administration. In other words, the Peruvian Tax Authority (SUNAT) could not oppose the use of the aforementioned code 7 for the purposes established by the cassation ruling under analysis.
In summary, these judicial rulings offer a clear and legal solution to overcome the limitations of the electronic Purchase Book, paving the way for greater simplification and legal certainty in the Peruvian tax environment. This provides peace of mind and certainty to businesses operating in our country.
It is essential to remember that, to be able to use a tax credit, it is necessary to record payment vouchers in the Purchase Book within the month of their issuance or within the following twelve months.
The referred Cassation ruling acknowledges the limitation of the electronic Purchase Book, which does not allow taxpayers to record an omitted payment voucher within 12 months of its issuance in a Purchase Book that has already been declared for a specific month. However, said ruling suggests a solution: using code 7 to add payment vouchers, referencing the months in which the respective tax credit should have been applied (i.e., any of the 12 months counted from the issuance of the payment voucher). Although the definition of such code in current regulations does not allow this (which is why the limitation has always existed), this jurisprudence enables the use of this code for such purpose.
It is pertinent to remember that another Cassation Ruling, No. 16618-2023, has set out that cassation rulings create a legal precedent that must be complied with by the judicial bodies and the public administration. In other words, the Peruvian Tax Authority (SUNAT) could not oppose the use of the aforementioned code 7 for the purposes established by the cassation ruling under analysis.
In summary, these judicial rulings offer a clear and legal solution to overcome the limitations of the electronic Purchase Book, paving the way for greater simplification and legal certainty in the Peruvian tax environment. This provides peace of mind and certainty to businesses operating in our country.