What's the value added sale tax in Mexico city?
Is it included in the price? or is it added on top of the retail price/shelf price?
- clontarf1002Lv 78 years agoFavorite Answer
The IVA (impuesto sobre valor agregado) or value added tax is 16%. It is always included within the price.
edit: thumbs down? really? surely from someone who doesn't even live here and therefore would not knowSource(s): I live in Mexico City
- GoodieLv 58 years ago
Taxes do not get applied to individual items. IVA appears at the bottom of a bill and is 16% of taxable items. There is a flat tax for most and that is nationwide.@16%. The system has been in place in Europe for years.
That is what IVA stands for , it is an acronym for Impuestos valores agregada. It is not only the sales tax figure but applies to business and anyone that declares income from a business as in restaurants and the like.
Supermarkets , for example, buy from a manufacturer after the value added gross margin and the gov gets that @16% and it`s only on taxable items. Some German industrialist came up with the concept in 1954.
- Chia BLv 68 years ago
16% which is already added to the shelf price