Impuesto Sobre El Iva

The value-added tax or value added tax is applied in many countries, and widespread in the European Union. Generally it is also known by the acronym VAT.

VAT is an indirect tax on consumption that is financed by the final consumer. An indirect tax is a tax that is not perceived by the Treasury directly tributary. VAT is received by the seller at the time of every business transaction (transfer of goods or services). Intermediaries Sellers have the right to reimburse the VAT they have paid to other vendors that precede them in the marketing chain (tax credit), deducting the amount of VAT charged to customers (tax debit) and must pay the balance to the Treasury. End users are required to pay the tax without reimbursement, which is controlled by the Treasury forcing the company to deliver proof of sale to the end and integrate them back to accounting in a business.

Value Added Tax (VAT), which is paid daily and generates about 40% of total revenue. We must also pay taxes on the income of first and second category and finally the global complementary tax. All these resources are collected by the Internal Revenue Service

Fundamentals of regulatory change of value added tax

The creation of the internal market at the community level involves the elimination of fiscal frontiers and requires new specific regulation for the purposes of value added tax, of intra-Community transactions and minimum harmonization of tax rates and tax adequate administrative cooperation between Member States.

In this regard, the Council of the European Communities adopted Directive 91/680/EEC of 16 December, regulating the legal regime of intra-Community, Directive 92/77/EEC of 19 October, on the harmonization of tax rates and has issued Regulation 92/218/CEE, of January 27, 1992, on cooperation to be provided tax administrations, thereby creating a regulatory framework to be incorporated into our law by operation of the Accession Treaty to the European Communities.

Moreover, the experience gained during the seven years of the VAT has highlighted the need for certain amendments to its legislation, to solve some technical problems or simplify the implementation.

All affect a profound change in the rules of the Value Added Tax which justifies the adoption of a new law regulating such tax, to incorporate the above provisions and amendments alluded community of refining the rules.

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