Honduras improves VAT invoices and control environment
Honduras’ VAT (Impuesto sobre Ventas) system was updated for new invoice and administration requirements.
Generally, invoices and credit notes are required for all taxable supplies of goods or services. To enable some flexibility for smaller retailers, the government does permit the use of electronic cash registers. These new measures are aimed at reducing potential VAT fraud. They came into force in May 2014. They include:
- All taxable persons must now keep detailed accounting records to support their invoices
- Detailed control measures for producing VAT invoices for all transactions
- Procedures to apply for approved tax invoice printers from the fiscal registrar
- These changes follow similar Mexican VAT invoice changes which have been a big success at clamping tax fraud.