Taxes on Sales/Purchases
Use
See
Taxes on Sales/Purchases, Sales Taxes and Additional Taxes.
Features
In Mexico, taxes on sales and purchases include:
VAT is levied at different rates according to where your business is located.
Excise duty, in the form of a special tax on production and services (impuesto especial sobre producción y servicios (IEPS)), is levied at each stage in the production of alcoholic drinks, tobacco products, and oil products. There are different rates of excise duty for different products. It is applied in addition to VAT, but is calculated on the basis of the net price.
An alcoholic beverage costs MXN 100 per bottle net. VAT at 15% takes the price up to MXN 115; excise duty is then added at 25%, giving a final gross price of MXN 140.
Country Version Mexico comes with all the settings required to handle these taxes.