On May 25, 2022, Law 10144 was published, which modified the following two articles of the VAT Law:
Addition of new clause 8 in Article 3: A new moment of the birth of the tax debit has been created for sales and provision of services supported in electronic invoices under the “on credit” modality. In effect, for these transactions, the VAT will occur with the “accrual”.
Modification of article 27: The method of determining VAT in the case of sales “on credit” has been modified. It has been established that in this type of transactions the tax debit must be paid no later than 90 days (in calendar days) after the issuance of the respective electronic invoice.
It is specified that this form of determination can only be applied by taxpayers that are: i) independent liberal workers, ii) individuals or legal entities that render professional services, iii) micro, small or medium companies registered before the MEIC, or, iv) producers registered before the MAG.
Also excluded from this form of determination are the aforementioned taxpayers who: i) are large national taxpayers, or, ii) those who sell or provide services “on credit” but through these operations carry out a “lucrative financial activity”.
Another important precision of the Law is that if the sale is paid before 90 days, the tax debit must be included in the D-104 of that month (when the payment is received). Also, this form of determination can only be applied to transactions supported exclusively by electronic invoices.
It is worth mentioning that these amendments are effective as of May 25, 2022.
See official document in the following link.