# Iva 8%



## NCas (Sep 9, 2013)

So I heard for us living in the border cities will see IVA go down to 8% starting next year. I'm not too aware of the details so I'm not sure how that's going to work. If I go to the oxxo will there be a slight discount on everything? What about online purchases how that going to work? Does it also apply to services like ISP and electricity? I know it seem silly but I can't seem to find information on this.


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## RVGRINGO (May 16, 2007)

You heard? Was it from a reliable source, or just a rumor?
Without details, we sure can't tell.


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## NCas (Sep 9, 2013)

RVGRINGO said:


> You heard? Was it from a reliable source, or just a rumor?
> Without details, we sure can't tell.


On the Mexico News Daily website that was an article about Ensenada fighting to be admission into new border zone. If the new IVA wasen't as concrete then I'm not sure why Ensenada would fight to be consider as part of that zone.


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## Isla Verde (Oct 19, 2011)

NCas said:


> So I heard for us living in the border cities will see IVA go down to 8% starting next year. I'm not too aware of the details so I'm not sure how that's going to work. If I go to the oxxo will there be a slight discount on everything? What about online purchases how that going to work? Does it also apply to services like ISP and electricity? I know it seem silly but I can't seem to find information on this.


If this comes to pass, my question is: why should border cities get a deal like this, when the rest of us will have to continue to pay the current 15% IVA? Doesn't seem fair to me!


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## NCas (Sep 9, 2013)

Isla Verde said:


> If this comes to pass, my question is: why should border cities get a deal like this, when the rest of us will have to continue to pay the current 15% IVA? Doesn't seem fair to me!


From what I understand it's to incentivize people to shop in Mexico. I found out from the locals that a lot of them actually cross the border to buy non essential goods. This is also the first Mexican city that I've been to where there is no Liverpool. 

Rent is also usually paid in dollars so people usually have US currency with them so I guess it makes sense to buy in the US and get dollars back. It also appears to be common to cross the border just to put gasoline in your car. If it does come to flourish it will be interesting to see how it goes.


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## AlanMexicali (Jun 1, 2011)

If the whole country gets a 50 percent discount in Mexico on the IVA tax say goodbye to modern Mexico and hello to the old Mexico of 25 years ago. AMLO stated he would be cutting in half the IVA once when Trump bullied him saying it is very unfair US imports are sold with a 16 percent tax. AMLO hasn't mentioned this stupid idea since. All social democracies around the World have a 15 to 22 percent value added tax on almost everything.


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## citlali (Mar 4, 2013)

I thought AMLO promised that for the border in his 100 points speech.. Did I dream it? I do not think so, I listen to all of his ponts carefully.


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## AlanMexicali (Jun 1, 2011)

https://tradingeconomics.com/mexico/sales-tax-rate

Look at the federal VAT sales tax rates of social democracies World﻿﻿﻿﻿ wide. 16 percent is not the highest rate. 

If Obrador goes ahead and makes the VAT ( value added tax) rate 8 percent I was simply speculating what might happen when this gia﻿nt share of money is gone and where will it then come from. The income tax rates in Mexico are already high.﻿



Mexico Taxes	
Last	Previous	Highest	Lowest	Unit 
Corporate Tax Rate	30.00	30.00	42.00	28.00	percent	[+]
Personal Income Tax Rate	35.00	35.00	35.00	28.00	pe﻿rcent	[+]
Sales Tax Rate	16.00	16.00	16.00	15.00	percent	[+]
Social Security Rate	9.23	9.23	17.63	0.00	percent	[+﻿]
Social Security Rate For Companies﻿	7.58	7.58	14.70	7.58	percent	[+]﻿
Social Security Rate For Employees
﻿ 1.65	1.65


VAT TAX RATES:

﻿
Country	Last 
Italy	22.00	Dec/18 
Argentina	21.00	Dec/18 
Netherlands	21.00	Dec/18 
Spain	21.00	Dec/18 
Euro Area	20.80	Dec/18 
France	20.00	Dec/18 
United Kingdom	20.00	Dec/18 
Germany	19.00	Dec/18"


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## citlali (Mar 4, 2013)

Yes it went up from 19 in France and we pay taxes through the nose apart from that..


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## Isla Verde (Oct 19, 2011)

citlali said:


> Yes it went up from 19 in France and we pay taxes through the nose apart from that..


Could the high taxes have anything to do with the rise of the GJ movement?


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## citlali (Mar 4, 2013)

no, we always had high taxes and we have a lot of social welfare and benefits as well. Macron wants to cut back on benefits and that is not going over well..He also did cut taxes to the rich to favor business ..


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## Isla Verde (Oct 19, 2011)

citlali said:


> no, we always had high taxes and we have a lot of social welfare and benefits as well. Macron wants to cut back on benefits and that is not going over well..He also did cut taxes to the rich to favor business ..


Cutting benefits for the average citizen while not cutting their taxes does not seem to be going over well, to say the least!


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## RickS (Aug 6, 2009)

.... and now that has been rescinded?


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## citlali (Mar 4, 2013)

Some onch way they are busy with Christ it...we will find out if it is enough . The protest are cooling off but that is the Frenchway , we will see what happen after Jan 1 when everyone sobers up.


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## NCas (Sep 9, 2013)

Can't wait to go into the store in the first and see if anything has change.


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