Value added tax and its accounting tax record in mexico

Introduction

In this topic, we will analyze very briefly the law of Value Added Tax (VAT in Mexico, where, holding hands, we will advance and we will go into a matter that although it is not good sight, we will try to understand it, since taxes are levies that collected from individuals and legal entities in a proportional and equitable manner contribute to public spending, since thanks to contributions we can enjoy Public Safety, health, Education, Parks, Roads, streets, among other rights that we enjoy and that make our life be easy.

The value added tax and its accounting tax record

The value added tax (VAT) in Mexico are levies that individuals and corporations are obliged to pay when in national territory they sell goods, provide independent services, grant the temporary use or enjoyment of goods, import goods or services.

The tax will be calculated by applying to the values indicated in this Law.

The rate being 16%.

We will analyze when VAT is paid:

We pay VAT, when we buy goods or when paying a fee for services examples (1) and (2):

When Avimael sells Rodulfo a bicycle with a value of 1000.00, Rodulfo, apart from paying the value of the bicycle, must pay $ 160.00 more for 16% VAT. When Avimael hires Rodulfo (electrician) to fix a Electric lamp, finishing his services, charges me the amount of $ 300.00 for fees, for which I am obliged to pay him $ 48.00 for 16% VAT.

The value added tax in no case will be considered to be part of said values.

The taxpayer will transfer said tax, expressly and separately, to the people who acquire the goods, use or enjoy them temporarily, or receive the services.

From the preceding paragraph we will give two examples of the way in which VAT is transferred and its accounting record.

For the sale of the bicycle: (example 1)

The value added tax and its accounting tax record

Transfer of the tax shall be understood as the collection or charge that the taxpayer must make to said persons of an amount equivalent to the tax established in this Law, even when it is withheld in the terms of articles 1o.-A or 3o., Third paragraph of the Law of (VAT).

The taxpayer will pay in the authorized offices the difference between the tax in his charge and the one that had been transferred to him or the one that he had paid in the importation of goods or services, provided that they are creditable in the terms of this Law. the taxpayer will reduce the tax at his expense, the tax that has been withheld.

The immediate superior paragraph states: The taxpayer will pay in the authorized offices.

Who is the authorized office?

The Tax Administration Service has the responsibility of applying the Tax and Customs legislation in order for individuals and legal entities to contribute proportionally and equitably to public spending.

Taking into consideration that the transfer of the tax referred to in this article will not be considered a violation of prices or rates, including the official ones.

conclusion

I want to state that this topic is intended to make a small contribution to anyone who is interested in learning the VAT accounting record in a simple way.