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sioux4noff

Sep 18, 2009, 1:26 PM

Post #1 of 9 (2642 views)

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IVA question

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I've tried to find this info, but so far no luck.

When a store posts a price, does that price need to include IVA? In other words, can a price tag say something is 100 pesos, but when you go to pay, themerchant adds 15% IVA. Most places, such as Walmart, Costco, Mega, etc, have shelf tags that show the total cost of the item.

Second part, do restaurant menu prices need to include taxes, or is allowable for them to put on the menu "tax not included"? Does it make a difference whether a restaurant is in a resort or hotel?

Hopefully someone can direct me to something on-line, or from their own personal knowledge can help me with this queston.

In Puerto Vallarta, the PROFECO office advertises on the radio that no restaurant can add a tip to your bill unless you agree to it. No matter what the size of party, apparently.

gpkgto

Sep 18, 2009, 3:07 PM

Post #2 of 9 (2609 views)

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Re: [Hound Dog] IVA question

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Tha goodness that in the good ol' USA everyone pays all their taxes!

Anyway--retail outlets and restaurants include the IVA in the posted prices. Service providers do as Hound Dog says--they generally only charge IVA if you need a factura or pay by some means other than cash. I am sure there are exceptions to this and every other "rule" in Mexico.

sioux4noff

Sep 18, 2009, 3:32 PM

Post #3 of 9 (2601 views)

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Re: [gpkisner] IVA question

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<<Anyway--retail outlets and restaurants include the IVA in the posted prices.>>

I've been to at least one store that didn't do that. They did have posted prices. We agreed on what I was buying and then he gave me a 10% discount. Then when he made up the nota (NOT a factura as I told him I didn't need one) he added 15% tax. When I asked him if wasn't the IVA customarily in the price marked, he said basically if I didn't like the way he did business I could shop somehwere else. Which I surely would have done except he had what I needed and I needed it soon. I've never bought anything there since though.

And I know of at least 1 restaurant that on the menu says "15% tax not included in the price"

I'm not worried about who does or doesn't pay their taxes. I know IVA doesn't apply to everything, and I know that sometimes when you request a factura, IVA gets added. Sometimes the price doesn't change - like at Walmart, Home Depot, Amutio, etc.
My question is mostly, does the law require it to be included in the stated menu price (for a restaurant) or shelf price at a store, if they are charging it.

(This post was edited by sioux4noff on Sep 18, 2009, 3:34 PM)

mazbook1

Sep 18, 2009, 3:45 PM

Post #4 of 9 (2594 views)

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Re: [sioux4noff] IVA question

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sioux4noff, No, there is no law about posted prices needing to include IVA. However, to prevent disgruntled customers, those businesses that post their prices without including IVA usually have them marked as "más IVA" in rather small print. 99 % of small neighborhood businesses and service providers quote prices without IVA, but only add it afterwards if you ask for a nota or a factura, both of which can be audited by Hacienda.

sioux4noff

Sep 18, 2009, 3:54 PM

Post #5 of 9 (2592 views)

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Re: [mazbook1] IVA question

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I have experienced stores wanting to charge the IVA if you need a factura, but that one was the only place that has added IVA when I requested a nota or recibo.
I guess Walmart, Mega and other big stores routinely charge and (presumably) pay in IVA, so inclusing it in the price is the easiest way.

Manuel Dexterity

Sep 18, 2009, 4:18 PM

Post #6 of 9 (2585 views)

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Re: [mazbook1] IVA question

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In Reply To

99 % of small neighborhood businesses and service providers quote prices without IVA, but only add it afterwards if you ask for a nota or a factura, both of which can be audited by Hacienda.

Here we go again!

Many small neighborhood businesses CANNOT add IVA to their prices and they CANNOT issue an invoice. If they are filing their ISR as a REPECO (Régimen de Pequeños contribuyentes, a tax filing option for small businesses grossing less than 2,000,000 pesos anually), they pay a flat tax with no deductibles. They can only offer a nota de venta which is worthless as proof of deductible expenses .

(This post was edited by Tio Copas on Sep 18, 2009, 4:34 PM)

jerezano

Sep 19, 2009, 7:38 AM

Post #7 of 9 (2502 views)

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Re: [Tio Copas] IVA question

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Helllo all,

Here in Zacatecas in all businesses which use machines [cash registers] to issue fracturas or recibos the IVA is included in the prices and after the total is shown, the machine inserts the amount of IVA included in the total. The machines used are government approved and are supposed to be used by all businesses. That is not so. Many business do not have them. Also many businesses with machines do not enter the transaction on their machines and just collect from you. This is particularly true with small purchases which, of course, over the day can total a large sum not reported to the government. Apparently the only way to catch such frauds is monitor the inventories against the sales. A very difficult thing for the government to do and very expensive if applied to small businesses.

Restaurants which don't issue such "cuentas" from cash registers usually include the IVA in their prices, as they are supposed to do. Other restaurants and taquerías do not. Some restaurants advertise their prices with the note: Más IVA or IVA no incluido. Many restaurants just don't tell.

Hound Dog is quite right. You should realize that income tax and sales tax evasions are just as prevalent in the US. It is just harder to evade the taxes there.

Hasta pronto, jerezano.

mazbook1

Sep 20, 2009, 7:53 PM

Post #8 of 9 (2417 views)

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Re: [Tio Copas] IVA question

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Well, Tio Copas, I've been in a small business grossing less than $2,000,000 per year for 12 years now, and I've given a factura to anyone wanting it for any purchase over $40. AND I have NEVER been refused a factura by ANY small neighborhood business when I asked them for one, although it was always 15% more than the price without a factura, but I knew that from the get-go.

Manuel Dexterity

Sep 21, 2009, 9:51 AM

Post #9 of 9 (2362 views)

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Re: [mazbook1] IVA question

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An invoice (factura) and a sales receipt (nota de venta) are 2 distinct pieces of paper. The first will show the IVA desgosado and the other CANNOT by law.

You might ask your accountant what tax regimen you are filing under. Maybe he feels it is necessary that you file in a different category that allows you to issue facturas. As I stated, if you or anyone else files their taxes under the REPECO (régimen de pequeños contribuyentes) category as a persona fisica or sole proprietor, then you CANNOT issue a factura. Period.

This regimen is the most simple and requires minimal bookkeeping. Since you are not allowed to deduct expenses of any type all you must do is keep track of your sales. You are supposed to issue notas de venta for all sales (ignored for the most part). This is an optional way to file but most small businesses favor it because of its simplicity. The main reason for a qualifying small business to not file this way is to capture sales from larger businesses that will only buy from another business that issues an invoice. A small print shop as an example.

There are other regimens under which to file as a persona fisica which require more exact bookkeeping and which allow you to deduct expenses, issue facturas etc.

If you have sales over 2,000,000 but under 4,000,000 you can file as a Personas Fisicas Actividad Empresarial Régimen Intermedio.

And if you do more than 4,000,000 then you can file as Personas Fisicas Actividad Empresarial Régimen General.

The above are for businesses. Professionals such as doctors, lawyers, accountants have their own regimens.

My wife and I have 3 different businesses. One in each of our names and another registered in one of our children's names. Two file under REPECO. One files under Régimen General.