Mexico has two different VAT rates, Standard rate is 16% and Zero rate (0%). The standard rate is applicable for all goods and services, except those who are provided with specifications of reduced rate such as exported goods, unprocessed food and milk, Patented medicines. With effect from January 1st 2015 VAT is also imposed on Imports. Mexico exempts VAT on books, newspapers, magazines, residential buildings, education, public transportation etc.
Mexico has two different VAT rates, Standard rate is 16% and Zero rate (0%). The standard rate is applicable for all goods and services, except those who are provided with specifications of reduced rate such as exported goods, unprocessed food and milk, Patented medicines. With effect from January 1st 2015 VAT is also imposed on Imports. Mexico exempts VAT on books, newspapers, magazines, residential buildings, education, public transportation etc.
Find the VAT price and net price in Mexico (GST % is 16) for an amount of 25000 $
Solution :
GST % = 16
Amount = 25000
Step 1 :
GST Price = (25000 * 16 ) / 100
= 4000 $
Step 2 :
Net Price = 25000 + 4000
= 29000 $
Hence the VAT Price is 4000 $ and Net Price is 29000 $
Solution :
GST % = 16
Amount = 25000
Step 1 :
GST Price = 25000 - (25000 * ( 100 / (100 + 16)))
= 25000 - (25000 * 0.86)
= 25000 - 21551.72
= 25000 - 21551.72
GST Price = 3448.28 $
Step 2 :
Net Price = 25000 - 3448.28
= 21551.72 $
Hence the VAT Price is 3448.28 $ and Net Price is 21551.72 $
