Featured Posts

  • Mexican Financial Stereotypes

    The world over has stereotypical ideas about Mexico and particularly about Mexico's financial situation. Richard Fisher, President and CEO of the Federal Reserve in Dallas, thinks it ...

    Read More
  • Employment in Mexico

    Employment law in Mexico has its own set of rules and regulations that must be followed, whether you are a corporation, a small business or running a ...

    Read More
  • IVA Increase and Facturas

    On January 1, 2010, the amount of Mexico's Value Added Tax, called IVA, increased by one percent. Here's a quick take on how corporations should deal with ...

    Read More
  • Taxation in Mexico

    Taxes are confusing enough in your own country, let alone in a foreign country. Add to that the language difference, and you've got a recipe for confusion. ...

    Read More
  • Hiring and Firing Employees

    Employment law in Mexico has a set of rules you may not be familiar with if you previously ran a business in the USA or Canada. This ...

    Read More
  • Read More

    More
    • Page Views 8994

    IVA Increase and Facturas

    There is a new amendment to the Value Added Tax Law (VAT or IVA), starting January 1st 2010 which allows for a rate increase from 15% to 16% (general) and from 10% to 11% (for border regions, including Cancun, Playa del Carmen, Tulum, etc.). Businesses that issue facturas or pay facturas will find themselves negotiating the change in various ways. Here are some tips for managing that change.

    1. Taxpayers with facturas issued before December 01, 2010 and collected before January 10, 2010 may apply the rates prevailing on 31 December 2009.

    2. Taxpayers who collect after January 10, 2010 should apply the existing rate in 2010 and may issue invoices in one of the two following ways:

    • When the parties have agreed on a price excluding IVA, a new factura should be issued for each item collected in 2010, with an additional factura issued for the additional IVA. The additional factura should include in writing the legend: “este comprobante es complementario del expedido con folio(insert original factura number here) de fecha (insert original factura date here).”
    • When the parties have agreed on a total price including IVA, a new factura can be issued as a credit note to lower the price without IVA, or a new factura can be issued for each transaction with the new rates in effect for 2010 (and the old factura cancelled).

    As always, if you have additional questions, contact the YES team by phone or email for detailed consultation.

    Share This Article

    Taxation in Mexico

    Next Story »

    Employment in Mexico

    Leave a comment

    Your email address will not be published. Required fields are marked *

    WPChat