Modification to annexes of VAT and payment on account forms from January 2025 in El Salvador

On January 31, 2025, the Ministry of Finance announced amendments to the annexes of the Tax Returns for the Transfer of Movable Property and the Provision of Services (F-07) and to the Withholdings annex of the Declaration of Payment on Account and Withheld Tax (F-14). These changes will apply from the January 2025 tax period.

The specific changes are:

1. 1. Schedule of Withholdings of the Declaration of Payment on Account and Withheld Tax.
   2. Schedule 1: Sales to taxpayer.
   3. Schedule 2: Sales to final consumer.
   4. Schedule 3: Purchases from taxpayers.
   5. Schedule 5: Purchases from excluded subjects.

I- Changes to form F-07 V14

• Details of sales to taxpayers: Two new columns “R” and “S” are added for the Withholding Annex, applicable from January 2025. For previous periods, “0” should be entered in these columns.
  • • Type of Operation (Income): Classification of income declared as income (taxed, non-taxed, excluded, mixed).
    • Type of income (Renta): Concept of the income declared in income (professions, arts and crafts, service activities, etc.).
• Detail of sales to the final consumer: Columns R (sales to free zones and zero-rated DPA) and column S (sales to accounts of non-domiciled third parties) are incorporated, applicable from January 2025. For previous periods, “0” should be entered in these columns.
• Detail of purchases: Two new columns “Q”, “R”, “S” and “T” are added, applicable from January 2025. For previous periods, “0” should be entered in these columns.
  • • Type of Operation: Type of operation (taxed, non-taxed, excluded, mixed).
    • Classification: To which classification does it belong (cost or expense).
    • Sector: Type of sector to which it belongs (industry, commerce, agriculture, services, professions, arts and crafts)
    • Type of cost/expense: according to the following classification (selling expenses without donations, administration expenses without donations, financial expenses without donations, cost of items produced/purchased imports/international purchases, cost of items produced/purchased domestically, indirect manufacturing and labor costs).
• Details of purchases of excluded items: The new columns “I, J, K, L” apply from the period January 2025 and must be submitted in February 2025. “0” should be entered in the four columns for previous periods.
  • • Type of Operation: Type of operation (taxed, non-taxed, excluded, mixed).
    • Classification: To which classification does it belong (cost or expense).
    • Sector: Type of sector to which it belongs (industry, commerce, agriculture, services, professions, arts and crafts)
    • Type of Cost/Expense: according to the following classification (selling expenses without donations, administration expenses without donations, financial expenses without donations, cost of items produced/purchased imports/international purchases, cost of items produced/purchased domestically, indirect manufacturing and labor costs).

II- Changes to Form F-14 V15

For annexes 1, 2, 3, and 5, four new columns “S”, “T”, “U” and “V” are added, applicable from January 2025. For previous periods, “0” should be entered in these columns.

• • • Type of Operation: Nature of the purchase (taxed, non-taxed, excluded, mixed).
    • Classification: Type of expenditure (cost, expense).
    • Sector: Category or economic activity (industry, commerce, agriculture, mixed).
    • Type of cost/expense: Detail of the cost or expense (sales expenses without donation, administration expenses without donation, etc.).

Operations reported in more than one annex should be classified with the code “8.” to avoid duplication in the sum of costs and expenses. Public institutions, municipalities and other taxable persons not registered for VAT should use the code “9.” in columns S, T, U and V.

In order to guide users and facilitate the filing of these returns to avoid any inconvenience in the process of uploading information, the Tax Administration has made available the User Manuals for uploading the annexes files and the corresponding templates. The link to view this information can be found at the following link:

See the information here.

For any additional questions, please contact our team at taxelsalvador@consortiumlegal.com