IVA?

by HolyMole @, Saturday, February 09, 2019, 08:34 (10 days ago) @ Casa Juan

I know this tax at 16% is applied to most purchases I make of building materials etc. It can add up to a sizable chunk of change. What I don't know is where do the proceeds go, how are they distributed and is there a list of exempt items somewhere?
Gracias

I'd imagine IVA tax revenues go into "general revenue" as sales and service taxes do, in most jurisdictions. In our part of Canada we have a 7% provincial sales tax on most things, (groceries are an exception), and a 5% federal Goods & Services Tax. These taxes are always shown as an add-on, so the purchaser gets a nasty surprise with each and every purchase. We like the Mexican system that includes the IVA in the price....at least on groceries and restaurant meals... although I've heard that many of the high-end local restaurants have the cheek to add the IVA to their already-inflated prices.


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