Credit balances and offsets: deadlines for their refund

Taxpayers who liquidate balances in favor in their returns may impute them in their private liquidation or request their compensation. Those interested in requesting the refund of a balance in favor or requesting a compensation must take into account certain deadlines.

The request for refund of credit balances must be filed no later than two (2) years after the expiration date of the term to file the return. When the credit balance of the income tax or VAT returns has been modified through an official assessment and the refund has not been made, the rejected part may not be requested even if such assessment has been challenged, until a final decision on the validity of the balance is made(see article 854 of the Tax Statute -ET-).

However, in the case of the request for offsetting, it must be filed no later than two (2) years after the expiration date of the term for filing the tax return.

For the compensation of credit balances originated in the VAT returns of producers of exempt goods of article 477 of the ET and those responsible for goods and services provided for in articles 468-1 and 468-3 of the ET, this term shall be of one (1) month counted from the date of filing the income tax return corresponding to the taxable period in which the respective balances were generated.

Let us remember that, if it is an income tax return to which the audit benefit was applied in accordance with the provisions of article 689-2 of the ET, the opportunity to request the refund of the balance in favor shall be within the same six (6) or twelve (12) months in which the return shall become final.

Source: Actualize