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Thread: This whole ITBIS and NCF thing SUCKS!

  1. #1
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    Default This whole ITBIS and NCF thing SUCKS!

    I, for one, have always been receptive to the idea that the RD has got to get their act together if they ever expect to move into the 21st century, but there are some things that defy logic.

    One of those things is the new rules concerning the ITBIS monthly reporting and vendors getting their NCF (Numero de Comprobante Fiscal) to register their sales.

    This whole thing with the NCF numbers is the most asinine thing I've ever seen in my life. And no one has answers.

    It's the same with dealing with the ITBIS monthly forms.

    They want me to detail every bank transaction I do every month? Are they nuts?! Can you imagine Plaza Lama filling out one of those?
    Has anyone seen the supermercados assigning a NCF number to every reciept thier cash registers are printing?

    I'm supposed to get a NCF number from everyone I do business with? Puleeese..

    For example, My company does business with companies in the states, so my invoices are in dollars. Supposedly, you can't do that. Your invoices have to be in pesos. I'm going to send an invoice to a company in the states in pesos? And if I buy something from a company in the states, they have to give me a NCF number for the transaction?

    I buy Forms from Customs, but do you think Customs can give me a NCF number for that sale? Of course not.

    My truck has 2 flat tires. Am I supposed to get a NCF from the illiterate warm body that comes to fix them?

    Or the guy from the street that came to fix my forklift.. He looks at me like I'm nuts if I ask him for a NCF number.

    And who the **** is going to review all of this information?

    Are there going to be armies of public employees mulling over all of these forms to make sure everyone is paying their dues?

    This has got the be the stupidest thing any gov't. has ever done. We have gone from one extreme to another. All that's going to happen is people are either going to refuse 'en masse' to fill these things
    out, or they're going to fill them out wrong.

    All this is going to do is drive more businesses off the books..

  2. #2
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    I was under the impression that anybody you paid money to for services or goods was required to provide you with a NCF, not those which paid you money (they need your NCF number). Failure to have the NCF requires you to deduct the tax from the invoice and forward it directly. Makes perfect sense to me. The guy who fixes your forklift may look at you like you are nuts, but is is now time to pay big brother. Either he pays his taxes or you do it for him.

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    You beat me to it, JD.

    First of all everything has to be done by hand, as opposed to electronically. That means we can't e-mail our invoices, they have to be delivered in person. It's like going back in time, having to handwrite invoices and use carbon paper. Who knows, we might even see a revival of the typewriter industry.

    All this is creating even more traffic congestion, not to mention the huge waste of time and petrol as you run round delivering invoices to clients, and then have to do the rounds again to collect the payments. Before this, you could e-mail the invoice, the client would print it out, and you would sign it when you went to pick up the cheque.

    Then you have to pay all the the ITBIS you've charged that month before the 20th. Fine - as long as the people you invoiced have actually paid you before the 20th. Everyone knows that doesn't happen here, so small businesses have to pay ITBIS without having received it.

    One of Diario Libre's editorial columns on Monday pointed this out, giving the example of small businesses like food caterers who would not be able to sustain this blow, on top of having to fork out over 5,000 pesos to have the new invoices printed.

    I wonder if the whole thing will be pulled, once they realise it is such a fiasco?

  4. #4
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    one good thing about DR is that the only sure thing in here is death, forget the taxes.
    i am sure this whole ITBIS and NCF thing can be avoided too, somehow. show me a domininican who does not doublebook things....

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    I am glad I am not the only one who thinks this whole thing is going to turn into a fiasco. Everything I pay for has to have the number of the business I am purchasing it from, plus they are asking me for my numbers in return. Very few businesses seem to understand what it is, exactly, they are supposed to be doing. And I have run into quite a few who just say, pay cash, no tax - no number. They don't understand I need their number whether I pay cash or check. It is very frustrating.

    I pity those poor service workers who work odd jobs for little pay. I have been told I can't pay them without getting their RNC number. What a mess.

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    "Failure to have the NCF requires you to deduct the tax from the invoice and forward it directly. Makes perfect sense to me. "

    Surely you can't be saying that when Mr. Mechanic comes and fixes my forklift, and charges me 400 pesos, I should deduct the taxes that HE should be paying, and send it in myself.
    And he is going to say "Hey, thanks for paying those taxes for me" and take the 300 and something pesos that are left over.
    And how much should I take out?
    And, what number should I write down on my tax form, where it asks me for his NCF number?
    Have you even seen the new ITBIS reporting form?
    And yes, I am assigning a NCF number to all of my invoices. It's the ITBIS report form you have to fill out that is absolutely absurd.

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    Up till now must of the clients I work for have deducted 10% from each payment.

    Now I have to invoice them for the full amount + 16% ITBIS.

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    It's a huge mess and causing massive problems. I have been told they adopted the system from Chile. They should have also adopted a few Chileans to implement and administer the system because the people here are clueless! It's been dumped on everyone with very little consultation with the business sector.

    Chirimoya, you can print your own invoices, as long as they have your RNC and the NCF number on. Use Quickbooks, Quicken or something similar. That's a better way, then if you make a mistake you can go back and edit it. Then you avoid sending in the non-used invoice with an explanation letter to the tax dept (DGII). Much less hassle than going to one of the "Government approved" printers. I wonder who owns these print shops?

    HOWMAR, it makes perfect sense, I agree. Now stand up and look around you, yes, this is the Dominican Republic! Yeah, that's right, sit back down and agree with JD, hehehe.

    The good news, employment will increase in some sectors. Before DR1 had a part-time accountant (me). Now we have an accounting department, no, I'm not kidding!

  9. #9
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    Quote Originally Posted by JDJones View Post
    For example, My company does business with companies in the states, so my invoices are in dollars. Supposedly, you can't do that. Your invoices have to be in pesos. I'm going to send an invoice to a company in the states in pesos? And if I buy something from a company in the states, they have to give me a NCF number for the transaction?
    JD, it's not like that. We had a similar issue, it all depends on what goods and services are being provided etc. You can have invoices in US$, just for accounting purposes they need to be converted at the rate of exchange (tasa) as you have to present your accounts in pesos (RD$). We still invoice here in some cases is US$ and get paid in US$.

    If you would like the name and contact details of an accountant/lawyer that we worked with, let me know. He's Dominican, but holds law and CPA degrees here and in the USA. Great guy and very reasonable when it comes to billing

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    Quote Originally Posted by Robert View Post
    Chirimoya, you can print your own invoices, as long as they have your RNC and the NCF number on. Use Quickbooks, Quicken or something similar. That's a better way, then if you make a mistake you can go back and edit it. Then you avoid sending in the non-used invoice with an explanation letter to the tax dept (DGII). Much less hassle than going to one of the "Government approved" printers. I wonder who owns these print shops?
    Thanks, but too late for us. The printers are RD$5,000 richer.

    The good news, employment will increase in some sectors. Before DR1 had a part-time accountant (me). Now we have an accounting department, no, I'm not kidding!
    That's what Diario Libre was saying last week! IIRC DR1 news quoted it too.

    So apart from the printers and accountants, who else is celebrating?

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