What are the requirements to belong to the common regime?

Asked by: Martina Rodriguez | Last updated: December 24, 2021
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Common regime in the sales tax

  • Keep accounting.
  • Enroll in Rut.
  • Issue invoice.
  • Declare VAT.
  • Withhold VAT.
  • Obligation to report the cessation of activities.

What are the requirements to belong to the simplified regime?

Requirement to belong to the simplified regime

  1. That in the previous year or in the current year they had obtained total gross income from the activity, less than 3,500 UVT.
  2. That they do not have more than one commercial establishment, office, headquarters, premises or business where they carry out their activity.

How do I know if I am a common regime?

Every legal person, by the mere fact of being legal, must belong to the common system. The income caps and other requirements only apply to natural persons, since legal persons will always be of the common regime regardless of their income.

When does a natural person belong to the common regime?

Both legal and natural persons who meet the following aspects belong to the Common Regime in 2020. Natural persons: they must sell or provide services that are taxed with VAT; They must also exceed the limits that allow them to be classified as not responsible.

What are the requirements to benefit from the simplified regime in 2020?

Requirements to belong to the Simplified Regime

  • In the previous year or in the current year, you have obtained total gross income from your activity below 3,5000 UVT.
  • Do not have more than one commercial establishment, headquarters, office, business, place where you carry out your activity.
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When does a person belong to the simplified regime?

Natural persons who are merchants and artisans, who are retailers or retailers, belong to the simplified regime; farmers and ranchers, who carry out taxed operations, as well as those who provide taxed services, as long as they meet all of the following requirements: Submit …

When do you go from the simplified to the common regime? What is the period?

You must have been in the Common Regime for no less than three years fulfilling all the requirements of the Simple Regime, the required years must be consecutive and will not be valid if in any month or fraction of a month you failed to comply with any of the requirements, as stipulated in the Article 505 of the Tax Statute.

How to know if a person is Common and Simplified Regime?

How to know if a company is a common or simplified regime

  1. Keep the books.
  2. Enroll in Rut.
  3. Issue an invoice.
  4. Declare VAT.
  5. You must report the cessation of your activities.

How to know if it is a common or simplified regime in the RUT?

Requirements to be a simplified regime:

  1. In the previous year they must have obtained gross income of less than 3,500 UVT (tax value units), for 2018 it is equivalent to $116,046,000.
  2. That they have a maximum of one business establishment, office or premises where they carry out their activity.

How much does the common regime pay?

In Colombia, companies must pay their taxes, and among the taxes they must pay are: Income Tax. Value Added Tax (VAT) Withholding at Source.

What is the common regime now called?

Obligations of those responsible for VAT

For merchants, keep accounts. Register in the RUT or make the update in case of having belonged to the group of those not responsible for VAT. Submit income statement to the DIAN.

What are the obligations of those responsible for the common regime?

Those responsible for VAT under the common regime must comply with the following obligations. Register in RUT as responsible for sales tax. … Collect VAT. Submit the bimonthly statement within the established deadlines and pay.

How to know if a person is responsible for VAT?

As a general rule, any natural or legal person who sells VAT-encumbered products or provides VAT-encumbered services is responsible for sales tax. If the taxpayer, natural or legal person, sells products or provides services that are not subject to VAT, they are not responsible for VAT.

What taxes must a natural person of the Simplified Regime pay?

Unified Tax in the Simple Tax Regime

Income tax. The National Consumption Tax, as long as food and beverage sales services are carried out. Consolidated Industry and Commerce Tax.

What should I do to go from common to Simplified?

To benefit from the simplified regime, those responsible for the common regime must submit a request to the Dian and demonstrate that in the three previous years, the conditions established to belong to the simplified regime were met for each year.

What is a simplified regimen?

The simplified regime is a special Colombian tax legislation that is applied to people with particular characteristics, called “small merchants”, to determine the payment that they must make, for taxes, to the State.

How to know the tax regime of a company?

When entering My SII with your RUT and password, in the My Tax Information section, you can verify if you are covered by 14 ter, entering the My Characteristics option, where the attribute is displayed if it is valid in the SII records.

What is the common regime and who belongs to it?

The common regime is that person or company that is registered as responsible for the sales tax, for selling taxed products or services, and that is not classified as not responsible for VAT (old simplified regime).

What is the simplified regime and who belongs to this regime?

The Simplified Regime for Small Taxpayers (RS) or Monotax, is a simplified, integrated and optional tax regime, intended for those subjects that the law defines as small taxpayers for meeting certain requirements.

What is the tax regime in Colombia?

The Colombian tax system establishes national, departmental and municipal taxes. … Within the municipal and departmental taxes, the main ones are the industry and commerce tax (ICA), the property tax and the registration tax.

How is the change from common to Simplified regime made?

Amount of bank appropriations and deposits equal to or less than 3,500 Uvt. Have a maximum of one business establishment. Do not develop activities under franchise, concession, royalty, authorization or any other system that implies the exploitation of intangibles.

When can you change tax regime?

Companies can request a change of tax regime in January of each year, when making the first declaration and payment on account of the Income Tax (IR).

How to go from one regime to another?

To change regimen to the RER, you only have to submit your monthly declaration and payment through SUNAT Online Operations within the expiration date, which corresponds: January of the year you make the change, if you come from the General Regime or MYPE Tax Regime.

Who belongs to the 2020 simplified regime?

Natural persons who meet the requirements indicated in paragraph 3 of article 437 of the tax statute belong to the simplified VAT regime for the year 2020. Simplified regime or people not registered as responsible for VAT.

What happens when a person is not responsible for VAT?

A person is not responsible for VAT if they do not carry out an activity taxed with VAT, and if they carry out any taxable activity, then they will be responsible for said tax, but they may register as not responsible if they meet the requirements indicated by article 437 of the tax statute. in your paragraph 3.