Everyone knows vat. But would you know what exactly it is and what it is for? The value added tax. Is the most important indirect tax and has been created. To tax the consumption of goods and services. Therefore. It influences the final price of all the products we consume. If you want to know how this type of tax works.Who must pay it. How it must be declared and what types of vat exist. You are in the right place.
When you pay the bill in a restaurant
a night in a hostel or get some fillings. You are also paying vat. Unlike other taxes such as personal income tax. The value added tax is a percentage that is added to the initial price of consumer goods and services. As you can see below. Both the percentage and the type of vat vary depending on various factors.
As we said before, this type of tax is the percentage Database that the. Treasury receives in the price of the items we buy and the services we hire as final consumers.
Companies or borrowers that collect vat therefore do not keep the amount of this tax. Since every 3 months they must pay the tax agency the difference between the invoices issued and the tax itself. Individuals or companies that invoice with vat can deduct from this tax the input. Vat (vat on expenses to carry out their economic activity when they go to declare).
How vat works
There are three types of vat tax depending on the product USA Phone List or service invoiced or the autonomous community .In which the transaction is carried out: while the general rate of the igic (canary islands general indirect tax) stands at 7%. In ceuta and melilla the ipsi (tax on production.Services and imports) has a tax rate that varies between 0.5% and 10%.
