VAT in NORTH AMERICA???
(Canada, USA, Mexico)
THERE IS NO VAT in The States!!! WRONG!
YOU MAY WANT TO LOOK AT -----PUERTO RICO in 2015 -------
VAT is the sales tax in about 150 countries. Now Puerto Rico is replacing their sales tax with a modern VAT (they call it IVA in the Spanish Language) in 2015.
Their standard VAT/IVA rate will be 16% replacing their 7% Sales Tax.
Puerto Rico Governor Garcia Padilla has announced that their House of Representatives has passed The Tax System Transformation Act and the Departamento de Hacienda (their Treasury) is now working on the details to be finished in 2015.
This is obviously the first VAT coming closer to home - even though Puerto Rico is not a full state of the US - they would not have done it without Washington knowing about it.
Please let us know if you want details about their IVA/VAT system (Taxable transactions, Exemptions, Import VAT, Invoicing rules, VAT collecting and accounting, Calculation of stocks changing from sales tax to IVA, Comprabante Fiscal vouchers, Debit and Credit notes, IVA refunds and Reimbursements.
? HABLO ESPANOL? It may be helpful to find somebody in your company who speaks Spanish which is the official language in PUERTO RICO.
VAT in CANADA?
YES, there is VAT as Federal Sales Tax all over Canada for more than 10 years.
They call it GST at the rate of 5% or HST at the standard rate of 12 or 13 or more % in some parts of the country.
Canada has 10 provinces (states) and three territories - some of them run their own provincial sales tax besides the federal GST or HST. Some provinces have merged their provincial sales tax with the federal GST (Goods and services tax) and call it HST (Harmonized Sales Tax).
Canada has two official languages - English and French. GST in French abbreviates to TPS (Taxe sur les Produits et Services) and PST (Provincial Sales Tax) abbreviates to TPQ in the French speaking Province of Quebec.
PARLEZ VOUS FRANCAIS?? It may be helpful to find a French speaking staff member if you are discussing VAT or accounting or invoicing etc. in Quebec.
VAT in MEXICO?
YES, Mexico has a Federal VAT tax for a number of years. They call it IVA in their (official) Spanish Language.
The standard IVA rate is 16%
Most VAT countries have reduced VAT rates for example for basic foods or health care etc.
All VAT countries allow imports only if the IMPORT VAT (IVA) has been paid at the port of entry, either by the foreign sender or by the local recipient.
? HABLO ESPANOL?? Again it may be helpful to find somebody to negotiate or understand the Spanish paperwork, i.e. contracts, customs declarations, etc.
Please watch out for any business related expenses (Travel, Trade shows, Events, Imports or Exports) if you are doing business with any of the above mentioned countries or any other of the more than 150 VAT countries. VAT rates and Import VAT rates are often about 20% - VAT or Import VAT not recovered will cut your profits, budgets and projects.
We provide worldwide VAT Refund Claim filing and VAT/Import VAT recovery services for more than 20 years in all applicable VAT countries. Our substantial VAT recovery results can be seen on our website www.insatax.com - click on VAT refund samples.