BajaNomad

IVA on??? thanks all, asked and answered

rhintransit - 4-21-2016 at 06:21 AM

below is original post. asked and answered. my research confirms that IVA is due on realtor services. a factura should be requested/received, an official one, including RF number of serve-r, and may, in some cases, be written off against gains.


Okay, I'm kinda getting used to IVA being 16%. And hidden, or not, on the cost of meals, food, purchases.

And the bank adding 16% to my fidiocomiso...

But has anyone heard of paying IVA on a realtor's commission?

[Edited on 4-21-2016 by rhintransit]

DENNIS - 4-21-2016 at 07:05 AM


Never. Services aren't taxed. It's a realtor rip-off......reason enough to get rid of him/her.

rhintransit - 4-21-2016 at 07:42 AM

Quote: Originally posted by DENNIS  

Never. Services aren't taxed. It's a realtor rip-off......reason enough to get rid of him/her.


thanks, Dennis. can you cite me a reference for this please?

vandenberg - 4-21-2016 at 08:00 AM

Roberta.
Any accountant in town should be able to answer that question.

IVA

bajaguy - 4-21-2016 at 08:16 AM

Make the "realtor" provide documentation of the authorization to charge the IVA

Paulclark - 4-21-2016 at 08:18 AM

It is a goods and services tax, that is why the bank charges the 16% on your fideicomiso and your realtor charge 16% on their fees. It is the law and it is deductible as an expense on the sale of property.

SFandH - 4-21-2016 at 08:19 AM

"A core element of the Mexican tax system is a value-added tax (VAT), known by its acronym in Spanish, IVA. This term means impuesto al valor agregado. Mexico imposes VAT on all purchases of goods and services throughout the country."

http://offshoregroup.com/2012/02/07/manufacturers-in-mexico-...

Every other reference I read at the following link says the tax is applied to goods and services. There are a handful of items such as food and medicine that are exempt.

https://www.google.com/webhp?sourceid=chrome-instant&ion...

Paulclark - 4-21-2016 at 08:20 AM

and when it is charged you must receive a factura as an official receipt of payment.

DENNIS - 4-21-2016 at 12:34 PM




Waydaminit.........I know better than to apply US logic or structure to anything in Mexico, but arn't commissions wages earned? Since when does a client have to pay IVA on wages paid?





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[Edited on 4-21-2016 by DENNIS]

rhintransit - 4-21-2016 at 12:46 PM

Quote: Originally posted by DENNIS  



Waydaminit.........I know better than to apply US logic or structure to anything in Mexico, but arn't commissions wages earned? Since when does a client have to pay IVA on wages paid?

it's a service. same as the banks which provide the service of administering a fidiocomisso. goods and services are taxed. their laws, not ours.
I found many helpful references on line. for more discussion on the topic, see my post today in TalkBaja Facebook forum.






.

[Edited on 4-21-2016 by DENNIS]


[Edited on 4-21-2016 by rhintransit]

willardguy - 4-21-2016 at 01:14 PM

cool you found some folks that actually KNOW!!!!:P

ncampion - 4-21-2016 at 01:53 PM

That's good information to know. In the future, when/if I sell my property in Loreto, I will be sure to negotiate that as part of any sales contract.

Just looking at my ATM receipt

durrelllrobert - 4-23-2016 at 07:59 AM

..and on the bottom it says:
IMPORTE : $7000.00
COMISION USO ATM: $22.00
IVA: $3.52

DENNIS - 4-23-2016 at 08:53 AM

Quote: Originally posted by durrelllrobert  
..and on the bottom it says:
IMPORTE : $7000.00
COMISION USO ATM: $22.00
IVA: $3.52


Isn't the use of a privately owned [bank] appliance a bit different than service.......like renting a car, or a hotel room?

cabobaja - 4-23-2016 at 10:11 AM


Real Estate Transaction:

16% IVA is charged to the seller. 16% on the commission received.
The seller can request facturas for the 16% as a deduction against
capital gains. Capital gains and the 16% IVA is paid to the notary
who issues a receipt and pays the monies to the Mexican government.