The Value Added Tax, also know as “VAT”, It is one of the most important taxes in the country at the “collection” level, since it affects almost all goods and services that are traded. For this reason, many people ask how much VAT they pay when purchasing a good or service.
How do you get the 21% VAT?
The rate of 21% of VAT is considered the “general” rate, since it applies to almost all the goods and services that are commercialized in the national territory. For example, when buying a perfume.
In this case, depending on the type of taxpayer you are will be the way to calculate it. In case you are registered responsible seller, at the time of issuing a invoice type “A”, the price of the product must appear and “discriminated” the VAT. That is, the VAT appears in a “separate” section.
Example of invoice type “A” with VAT of 21%
- Price of the product sold: $10,000
- VAT 21%: $2,100
- Total price to be paid by the buyer: $12,100
It should be remembered that the invoice type “A” is the one made by a registered responsible seller to a registered responsible buyer. In this way, you can deduct the VAT that must be paid to the treasury.
Example of invoice type “B”
- Price of the product sold: $12,100
In this case, the buyer only You will see the final amount to be paid, but that does not mean that VAT has been paid. Namely, VAT is paid in the same way as in the case of the type “A” invoice, with the difference that it is not “discriminated”.
In the type “B” invoice, although VAT is charged, “discriminated” does not appear
to get the calculation of VAT paid, knowing that a rate of 21% was paid, simply take the amount paid and divide it by 1.21, obtaining the price without VAT. For example, in the case of this hypothetical product sold for $12,100 (according to invoice type “B”), $12,100 is divided by 1.21, obtaining $10,000, which is the product price without VAT.
When does the 10.5% VAT apply?
10.5% of VAT I know apply in certain special cases that is, it is about exceptions.
The most common cases are basic necessities, such as fruits and vegetables, Some capital goods, as well essential services such as services doctors.
As in the case of the 21% VAT, depending on the type of taxpayer you are will be the way to calculate it. For example, in the event that you issue a bill yet registered manager, It must be the type “A” invoice.
Example of invoice type “A” with VAT of 10.5%
- Price of the product or service sold: $5,000
- VAT 10.5%: $525
- Total price to be paid by the buyer: $5,525
As we mentioned earlier, the invoice type “A” Is that which made by a responsible seller of record to a responsible buyer of record. In this way, you can deduct VAT that you have to pay to the tax.
Type “A” invoices are between a registered responsible seller and buyer
Example of invoice type “B” with VAT of 10.5%
- Price of the product sold: $5,525
In this case, the buyer will only see the final amount to be paid, although, in the same way, he paid VAT. Namely, VAT is paid the same as in the case of the type “A” invoice, with the difference that it is not “discriminated”.
to get the calculation of VAT paid, knowing that a rate of 10.5% was paid, simply the amount paid must be taken and divided by 1.105, getting the price without VAT. For example, in the case of this hypothetical product sold for $5,525 (according to invoice type “B”), divide $5,525 by 1,105, obtaining $5,000, which is the price of the product without VAT.
What products have 27% VAT?
The rate of 27% VAT is the highest of all Y apply to certain activities such as electricity and telecommunications.
In these cases, it is most likely that you will only suffer this type of rate as a client, since the activities that are taxed with this rate require large sums of money in investments.
The 27% rate applies to services such as electricity
Example of invoice type “A” with VAT of 27%
- Price of the product or service sold: $1,000
- VAT 27%: $270
- Total price to be paid by the buyer: $1,270
As we mentioned earlier, the invoice type “A” is one that makes a responsible seller of record to a responsible buyer of record. In this way, the buyer will be able to deduct the VAT that must be paid to the treasury
Example of invoice type “B” with VAT of 27%
Price of the product sold: $1,270
In this case, the buyer will only see the final amount to be paid, although, in the same way, he paid VAT. In other words, VAT is paid in the same way as in the case of the type “A” invoice, with the difference that it is not “discriminated”.
to get the calculation of VAT paid, knowing that a rate of 27% was paid, simply take the amount paid and divide it by 1.27, obtaining the price without VAT. For example, in the case of this hypothetical product sold for $1,270 (according to invoice type “B”), divide $1,270 by 1.27, obtaining $1,000, which is the product price without VAT.
