What does I.V.A. mean?

In terms of taxes, acronyms are handled a lot, so the question arises what does VAT mean.
VAT = Value Added Tax or Acquired Value Tax.
The tax is a tribute or percentage imposed by a government than a citizen who is a natural or legal person, such as companies, consortiums, both public or private. From manufacturers, producers, assemblers, traders; They are designated to pay for owning movable property, selling, buying, in the same way for professional services.
In such a way that VAT (Value Added Tax) has been an indirect tax for consumption (purchase - sale). Who is the person who buys the one that absorbs the payment of that tax according to the percentage that is destined, for the example in Mexico It is stipulated in the Tax Law that some products with a tax have to be paid for their consumption 16% more than their price net.
Therefore, the seller or service provider is the one who will collect that tax, and will separate the money that corresponds for the sale or provision of the service, and the VAT that the buyer paid, and is what he will have to deliver to the treasury.

So it is necessary that the person who is engaged in trade or service provision knows how to manage her income or keep accounting. As a taxpayer you can also deduct the payment of VAT, when you have to make payments for other services necessary to carry out your work.
This type of tax or contribution, exists because it is a way that governments can obtain finances to solve public needs and the payment of public servants for the exercise of their functions.
Going back to the past, the grandfather of taxes is tribute. This is how it was called in ancient times, in a general way when a people or nation was obtaining control of territories and people through war, those peoples devastated and subjected They had the obligation to pay a tribute to the king or monarch who subdued them, which consisted of labor, as well as young people to go to war, basically they were slaves in the service of the ruler. A clear example of this were the conquests of the Spanish to the Indians of the Indians, which really was a portion of what is now America. This way you now know what VAT means.