Sample Fee Breakdown

The fee receipt breakdown is the separation of each of the parts as:

1. Amount
2. VAT
3. Subtotal
4. Income tax withholding
5. VAT withholding
6. Total to pay or net

This separation allows a clear understanding of how much the value added tax will be and can be prepared for its entry into the corresponding return.

It should be noted that in Mexico and in some other countries the concept of receipt of fees has disappeared and has been replaced with an invoice that must be electronic, being called CFDI.

Example of breakdown of receipt of fees for an amount of 5,000 pesos:

To get the breakdown we will put as an example an amount of payment of fees of 5,000.00 pesos and we will accommodate the VAT and later the subtotal, leaving out the VAT withholding and the income tax withholding, finally leaving the total net.

• Customer = (natural person)
• VAT amount = (16%)
• Amount = ($ 5,000.00)
• VAT = ($ 800.00)
• Subtotal = ($ 5,800.00)
• VAT withholding = (0%)
• Income tax withholding = (0%)
• Total net = ($ 5,800.00)

Example of breakdown of fees to legal person:

Breakdown of VAT fees to a legal entity in the amount of $ 10,000.00 with 16% VAT.

• Client = (Legal person)
• VAT amount = (16%)
• Amount = ($ 10,000.00)
• VAT = ($ 1,600.00)
• Subtotal = ($ 11,600.00)
• VAT withholding = (10.667%) = ($ 1,066.67)
• Income tax withholding = (10%) = ($ 1,000.00)
• Net total = ($ 9 533.33)

Example of breakdown of VAT fees to government institution:

Breakdown of VAT fees to a government institution for an exact amount of $ 20,000.00 with 16% VAT.

• Client = (Government Institution)
• VAT amount = (16%)
• Amount = ($ 20,000.00)
• VAT = ($ 3,200.00)
• Subtotal = ($ 23,200.00)
• VAT withholding = (0%)
• Income tax withholding = (10%) = ($ 2,000.00)
• Net total = ($ 21,200.00)