Experts warn that a simple name change from the ITBIS (Impuesto a la Transferencia de Bienes Industrializados y Servicios) to VAT (Value Added Tax) could create legal loopholes and leave certain sectors without tax obligations, El Caribe reports.
The proposal to rename the ITBIS to VAT within the Abinader administration’s Tax Modernization Bill under study in Congress may involve more than just a simple change of words, potentially leading to unforeseen complications, the story in El Caribe explains.
Economists Magín Díaz and Edgar Morales were asked: How will this transition occur, and what adjustments will it entail? Díaz said that, in principle, this seemingly simple change could complicate matters, as the Ministry of Hacienda appears focused solely on changing the name rather than addressing underlying issues.
Morales explained that the term “ITBIS” specifically refers to the...
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