Value-added tax

The Value Added Tax , also called VAT (abbreviation) has been in effect since January 1, 1986. VAT is an indirect tax that falls on the expense, that is, by those who consume it.

Some of the characteristics of the Value Added Tax are: it is an ordinary tax, it is multi-phase (VAT payment phases) and of a community matrix.

With the introduction of the Value Added Tax, the transaction tax was lifted and the Rail and Tourism taxes were abolished.

Who is subject to VAT?

Value Added Tax liabilities are subject to:

• Natural or legal persons who independently perform activities of production, trade or provision of services.

What is subject to VAT?

• Transfers of goods and services rendered in national territory against payment.

• Imports of goods.

The purpose of VAT is the general taxation of consumption.

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