# Value added tax



## Tucson (Oct 30, 2010)

Receipts from stores show that here is a tax (11% coastal, 15% inland) on non-food items purchased. Is this tax also something you would see on bank trusts? Recently I've seen an increase of about 11% on Bancomer's usual amont for our trust fee. Just wondering.


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## holodeck (Oct 14, 2010)

Is there a tax on hotels?


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## sparks (Jun 17, 2007)

holodeck said:


> Is there a tax on hotels?


Both IVA and Lodging tax .... but usually included in cost and not noted separately


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## RVGRINGO (May 16, 2007)

As Sparks has noted, it is common, in Mexico, that the posted price of anything, from a shirt to an automobile, will include the IVA tax. That is a neat way of removing 'shock and awe' at the checkout counter. Of course, it may also be what leads folks to say that cars cost a lot more in Mexico; often, it isn't the case, it is just because the IVA is included.


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## conklinwh (Dec 19, 2009)

I think that it is great that prices are with tax included as hate sticker shock.
In most places where a receipt is given, the tax is broken out of bottom line.


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## Tucson (Oct 30, 2010)

If you can believe most of what you read on the internet, recently I read that effective January, 2010, a new tax was introduced in Mexico: it is the IEPS tax (tax on special services or products). The tax is between 25% and 50% and is layered upon items, even though an IVA tax is already added. IEPS taxes are on gaming, alcohol, and tobacco products. Depending upon the alcoholic content of your purchase, the scale can slide up to 50% depending on the alcoholic content. 

The IVA tax is supposed to be on all goods besides food and medicine. The current rate change for 2010 set it at 16% for most of Mexico and 11% for border areas and, I assume the coastal areas inside the Restricted Zone.

I did read somewhere it is also allowed on Trust Fee yearly payments which explains why I saw an increase on ours. 

Let us all hope that the money collected in Mexican taxes helps to improve the quality of life for the many have-nots.


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## conklinwh (Dec 19, 2009)

I'm not a smoker but we saw no noticeable change in the price of cerveza, vino o tequila from 2009 to 2010.


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## Tucson (Oct 30, 2010)

Nor do we smoke but I do see this IEPS tax amount on the bottom of store receipts, as well as the 11% value added (IVA) tax. 

Apparently, the higher the alcoholic content on the wine (or other spirit), the higher the amount of tax (25% to 50%). As already noted, the taxes are built in to the shelf price of the item. 

In particular, we found that wine prices are generally high in Mexico and the hefty IVA and IEPS taxes help me understand why.


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## conklinwh (Dec 19, 2009)

I doubt that stores absorbing but we paid about 80 pesos in 2009 and 2010 for the Argentine and Chilean wines we like and about 48 pesos for my favorite beer.


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