The taxable event of the IBS would be the onerous operations with goods and services. The value of the IBS as well as, during the transition, of the five taxes that are being replacedis not included in its calculation base (“outside” incidence).
Cumulativeness: full application of the principle of non-cumulativeness, characterized by the full recovery of the tax levied in the previous stages of the production and commercialization process of goods and services.
Taxpayers: taxpayers would be all those who carry out the taxable event, whether legal or natural persons. There would be a billing limit below which the registration of small entrepreneurs to collect the tax would be optional.
Calculation method: the calculation method would be the debit and credit system, in which taxpayers collect monthly the amount corresponding to the difference between the tax charged on sales and the tax levied on their purchases.
Credit regime: the credit regime would be that of financial credit, in which all taxes levied on goods and services used in business activities generate credit. There would be restrictions only on the appropriation of credit related to goods and services acquired for the personal use of the partners or employees of the company and not related to business activity.
Exports: there would be a complete exemption from exports and investments, guaranteeing the maintenance of credits by exporters.
Credit recovery: full and timely recovery of credits accumulated by taxpayers.
How Does Vat Work?
As we saw earlier, IBS was designed to follow the characteristics of value added tax (VAT), right? This tax model is applied in countries in Europe, North America and South America and is charged at different stages of production and sale of goods and services. Through this system, the tax on consumption does not depend on how the production chain is organizedallowing the tax passed on to the final consumer to be equal to the tax collected throughout the process, without double taxation. But how do i figure out sales tax? For that using the tax calculator is the best options.
Sale of organic products:
More and more people come to stores whose products do not have any chemical process that can alter their natural development, such as fruits or vegetables. Similarly, the market for cosmetics that are made with natural ingredients is growing. So look for distributors that have these types of products that benefit your body.
VAT is a non-cumulative tax charged at all stages of the production and marketing process, guaranteeing, at each stage, the credit corresponding to the tax paid in the previous stage. This characteristic of VAT makes it a neutral taxthe impact of which does not depend on the way production and circulation is organized, so that the tax paid by the consumer in the final stage of sale corresponds exactly to what was collected over the entire period. production and marketing chain.