Understanding VAT transfer: practical examples to understand its impact on your business

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First of all, it is necessary to know that VAT is an indirect tax that is applied to the added value of a product or service at each stage of its production or distribution. This tax is passed on to the final consumer, which means that it is the customer who ultimately pays the tax.

To calculate VAT when transferring goods, you must know the applicable VAT percentage in each case. In Mexico, for example, the general VAT percentage is 16%. However, there are different reduced or exempt VAT rates for certain specific products or services.

Once the VAT percentage is known, the calculation is done by multiplying the price of the product or service by the VAT percentage and dividing the result by 100. For example, if the price of a product is $100 and the VAT percentage is 16%, the calculation would be: $100 x 16 / 100 = $16.

It is important to remember that VAT is added to the price of the product or service, so the end customer will pay a total of $116 in this example. This additional amount corresponds to the tax passed on to the consumer.

In addition to calculating VAT when transferring, it is essential to keep proper records of all transactions and taxes paid and collected.


VAT is a tax applied to the added value of goods and services sold in a country. It is important to understand how this tax works and how it can affect your business.

To better understand the impact of passed-on VAT on your business, it is useful to consider some practical examples. Imagine that you have an online store that sells electronic products. If the VAT in your iceland telegram number country is 16%, this means that for each product sold, you will have to pass on 16% of the product's value as tax to the final consumer.

For example, if you sell a cell phone for $500, you would have to pass on $80 of VAT to the customer. This amount is added to the price of the phone, so the customer will pay a total of $580.

It is important to note that VAT passed on is not an expense for your business, but rather a tax that you must collect and then remit to the government. Therefore, it is essential to correctly include VAT on your invoices and keep accurate records of sales and taxes passed on.

Another aspect to consider is that the VAT transferred may vary depending on the type of product or service you sell. Some products or services may have a different VAT rate, such as basic foodstuffs which may have a reduced or zero rate.

Thank you for joining us in this comprehensive guide on VAT transferred and to be transferred! We hope you have found all the information you needed to understand this important topic in the tax field. Remember that knowledge about VAT is essential for any entrepreneur or digital marketing professional. Keep learning and applying your knowledge to achieve success in your business strategies!