VAT Accounting Record: Legal Aspect

The objective of this chapter is to facilitate the understanding of the provisions of the Value Added Tax Law that must be be observed when registering the operations carried out by individuals and legal entities obliged to pay said tax; Of course, it is not necessary to memorize such provisions, as they are frequently reformed or additions, so it is only recommended to interpret them to comply with them according to what is prescribed by the law.
Subjects of the tax. We understand by such those individuals and corporations legally 365 obliged to pay value added tax.
In accordance with the provisions of art. it. of this aforementioned law, individuals and corporations who, in national territory, carry out the following acts or activities are required to pay the 366 value added tax:
I. Dispose of assets. II. Provide independent services.
III. Grant the use or temporary enjoyment of goods.
IV. Import goods or services.
Disposal of assets. This transfer consists of the transfer of ownership of the goods, 367 transfer that is considered to have been carried out in any of the following cases:

1. From the moment the good is sent or delivered to the buyer.
2. Since the price of the good is partially or totally paid.
3. From the moment the document that covers the sale is issued.
The transfer of property that is carried out due to death, by merger of companies, or by donation should not be considered alienation.
Provision of independent services. This type of service provision is the one that occurs when there is no direct dependency between the withholder (employer) and the taxpayer (worker), in the case of payment of fees.
The provision of independent services that is carried out in a subordinate manner through the payment of a remuneration (salary income) is not considered.
No tax will be paid for the provision of the following services: 1. Those provided free of charge, except when the beneficiaries are the members, partners or associates of the legal entity that provides the service; 2. those of education, provided by decentralized organizations and private establishments that have authorization or recognition of official validity of studies, in the terms of the Federal Law of Education; 3. public land transportation of people, except by rail and that which requires a federal concession or permit to operate; 4. insurance against agricultural risks and life insurance, whether they cover the risk of death or grant annuities or pensions, as well as agent commissions and reinsurance, which correspond to insurance cited; 5. for those that derive interest and all other consideration other than the principal that: a) derive from operations in which the transferor, the service provider or Whoever grants the temporary use or enjoyment of goods, provides financing related to acts or activities for which the river is obliged to pay this tax or. to which the 0% rate is applied, b) credit institutions and credit unions receive or pay, in financing operations, for which they require concession or authorization and for the concept of discount in documents pending collection, as well as the commissions of the agents and correspondents of the credit institutions for said operations, c) the surety institutions, insurance institutions and mutual insurance companies receive in financing operations, d) workers pay their employers in mutual insurance operations, as well as payments by the beneficiaries to social security institutions, e) come from workers' savings banks, and from savings funds established by the companies, always that meets the deductibility requirements in the terms of the Income Tax Law, f] derived from obligations issued in accordance with the provisions of the General Law of Securities and Credit Operations; 6. those provided by stock exchanges with concession to operate and by brokerage houses, as well as the commissions of agents, brokers and promoters of the stock market; 7. those provided to its members as normal consideration for their fees and provided that the services they provide are only those related to the purposes that [es are their own, in the case of: a) parties, associations, coalitions and legally recognized political fronts, b) labor unions and organizations that group them, c) chambers of commerce, industry, agriculture, livestock or fishing, as well as the bodies that group them, d) employers' associations and professional associations, e) associations or civil societies organized for the purpose of scientific, political, religious and cultural, with the exception of those that provide services with sports facilities: hen their value represents more than 25% of the total the installations; 8. those of DÚblicos shows for the entrance ticket. Public shows are not considered those provided in restaurants, bars, cabarets, party or dance halls and nightclubs; 9. medical professional services, when their provision requires a medical degree in accordance with the laws, provided that they are signed by natural persons, either individually or through companies civilians; 10. loans by authors, referred to in the Federal Copyright Law.
Temporary use or enjoyment of goods. We understand the temporary use or enjoyment of property as a lease where one person allows another to temporarily use or enjoy tangible assets, in exchange for a: on-payment.
The tax will not be paid for the use or temporary enjoyment of the following assets: real estate destined for} used exclusively for dwelling houses; farms dedicated or used only for agricultural or livestock purposes; and, books, newspapers and magazines.
Import of goods and services. The following are considered imports of goods or services: it is: the introduction into the country of goods; the acquisition by persons residing in the country of intangible assets alienated by non-residents in it; the use or temporary enjoyment, in national territory, of intangible assets provided by non-residents of the country; the use or temporary enjoyment, in national territory, of tangible goods whose material delivery has been made abroad; and the exploitation in national territory of the services referred to in Art. 14, when x> r non-residents are lent in the country.
The application of the different rates is indicated below, according to the main values established by this law, according to the acts or activities carried out by both individuals and morals.
Application of the 15% rate. This rate will be applied to natural and legal persons who, in national territory, carry out the sale of goods, provide independent services, grant the use
temporary enjoyment of goods or import goods or services, such as: clothing, footwear, wines and liquors, both national and imported; telephone service, electricity, hotels, restaurants, nightclubs, fees for personal services; for the leasing of real estate not intended as a dwelling house, that of farms not dedicated or used for agricultural and livestock purposes, if machinery and equipment, except those that are liable to be used in agriculture and livestock (the leasing of machinery and equipment to industrialize agricultural and livestock products is not included in this exception), that of vehicles, that of safe-deposit boxes-the introduction to the country of foreign goods, the acquisition, by people residing in the country, of intangible goods alienated by people residents abroad, the temporary use or enjoyment, in national territory, of intangible assets provided by non-residents in the country, the temporary use or enjoyment, in national territory national, of tangible goods whose material delivery had been made abroad, independent commercial services when they are provided by persons who do not reside in the country. country, etc.
Application of the 6% rate. The tax will be calculated by applying the 6% rate to the values ​​indicated in this Law, when the acts or activities for which the tax must be paid are carried out by residents in the 20-kilometer border strips, parallel to the international dividing line of the north of the country, the border with Belize, Central America, or in the areas free of Baja California and partial of Sonora and Baja California Sur, and provided that the material delivery of goods or the provision of services is carried out in the aforementioned stripes or zones.
This rate will be applied when the sale and import of: products intended for food, such as cold meats and sausages, cereals, packaged chili peppers, preserved fruits, jams, ates, jellies, chocolates, sweets and candies, vegetables and legumes processed foods, mayonnaise, sauces, dressings and vinegar, canned pasta, canned fish and shellfish, and prepared foods for wear; patent medicines also cause this rate. Drinks other than milk are excepted; the concentrates, powders, syrups, essences or extracts of flavors; as well as those to which the 0% and 20% rates apply.
Application of the 20% rate. The tax will be calculated by applying the 20% rate to the values ​​referred to in this law, when the following acts or activities are carried out: the sale and import of the following goods: caviar, smoked salmon, elvers and champagne, televisions for color images with screens larger than 75 centimeters, motorcycles with a cylinder capacity of more than 350 cubic centimeters, skiing motorized watercraft, motorized jet skis and wave boards, firearms and their accessories, magnesium bumpers and movable roofs for vehicles, aircraft, except airplanes fumigators; the provision of the following independent services: those provided to credit card users on the amount they pay for the opening of the credit and for the extension for the exercise of it, those of cable television signal or by any other means other than general radio broadcasting, those of installing movable roofs for vehicles, and those that allow the Golf, horse riding, polo, motor sports or nautical sports activities, including membership fees and other considerations that may be required. disburse for the practice of these activities and the maintenance of the animals and the necessary equipment, the membership fee for restaurants, nightclubs or bars, of access restricted; as well as for the temporary use or enjoyment of the following assets: aircraft, except spray planes, motorcycles of more than 350 cubic centimeters of cylinder capacity, ski motorized watercraft, motorized jet skis and wave tables, and cinematographic or video recording equipment, as well as the tapes, films or discs for such equipment.
Application of the 0% rate. This tax will be calculated by applying the 0% rate when it refers to non-industrialized animals and vegetables, as well as for food products considered essential, such as: meat in its natural state, milk and its derivatives, egg, corn flour, wheat and nixtamal, bread and tortillas, both corn and wheat, edible vegetable oil, coffee, common salt, etc.
Calculation of the tax. To calculate the tax, the value of the sale, of the provision of services, of the temporary use or enjoyment or of the importation of goods, is applied to the rate established by this law for each case.
Value. The price agreed for the sale is considered as value, as well as the amounts that are also charged or charged to the acquirer for other taxes, duties, normal or moratorium interests, conventional penalties or any other concept. In the case of provision of services, the total amount of the agreed consideration is considered as value, as well as the amounts that are also charged or charged to whoever receives the service for other taxes, duties, per diem, expenses of all kinds, reimbursements, normal or late interest, conventional penalties and any other concept. In the case of the temporary use or enjoyment of goods, the price of the consideration agreed in favor of the person granting them is considered as value, as well as the amounts that are also charged or charged to whoever is granted the use or temporary enjoyment for other taxes, rights, -maintenance expenses, constructions, reimbursements, normal or late interest, conventional penalties or any other concept. In the case of importation of tangible goods, the value used for the purposes of the general tax is considered as value. of import, added with the amount of this last tax and of the others that have to be paid due to the importation.
Transfer of the tax. We understand by transfer of the tax to the collection or charge of the tax that the taxpayer must make to the people who acquire the goods, use them or enjoy them temporarily, or receive the services.
Way in which the tax should be transferred. The taxpayer will transfer the tax expressly and separately, that is, the tax must appear in the document (receipt, invoice or invoice remittance) that verifies the operation carried out expressly and separately from the value of the consideration.
Discounts, bonuses and returns. The taxpayer who receives the return of alienated goods and grants discounts or bonuses, must issue a credit note in which it expressly states that you canceled or restored the transferred tax, as the case may be, before making the deduction.
A credit note will also be issued in cases in which the tax, except in the case of discounts that are granted in the document stating the operation.
Monthly payments and deadline to present them. Taxpayers will make provisional payments no later than the 20th of each month of the fiscal year, by means of a declaration that they will present in the authorized offices. The provisional payment will be the difference between the tax that corresponds to the total of the activities carried out in the month of previous calendar with the exception of imports of tangible goods, and the quantities for which the accreditation.
Annual payment and term to present it. The tax for the year, deducting the monthly provisional payments, will be paid by declaration that will be presented to the authorized offices, within the three months following the closing of the exercise. Taxpayers of income tax will also present, with the final declaration of this tax, a copy of the declaration of value added tax, referred to in this paragraph.