Today's topic I bring it up, because to determine the effects of waivers certain tax payment and certain goods and services tax structure and other cases, it is necessary to understand the philosophy, characteristics and scope of Value Added Tax (VAT) and know the economic cycle of production of goods and services.
In any market economy produces a wide range of goods and services to meet the consumption needs of the population. Goods and services as products of economic activity in general can be classified into two types: i) as intermediate goods, if those who have acquired to resell or process to deliver a new product or service, ii) final products , if the user takes the latter with the intent to use or consume.
Obtaining a final product, usually involves several steps, as the processes of importation, production and distribution, including in all these stages, the services required by importers, traders and final consumers.
At each stage of the process, adds value to the product or service in this regard, the economic cycle, the value added is the value of the product obtained in each stage, the less the cost of intermediate products of earlier stages and that is where exactly lies the philosophy of the tax rate added; tax at each stage of value added to the final consumer, in order that the tax falls on it, so at each stage to determine the amount of tax due by VAT taxpayers of law is performed on the financial basis of the removal of tax collected on sales or services as input tax on import, procurement of goods and services, known the determination of "tax against tax."
consumer indirect levies such as VAT, offer more benefits to the tax authorities in their application because, once introduced into the system and overcome the barriers of incorporation, as occurred in countries of America, found little resistance for payment by consumers, and since the control and recovery rests with the suppliers of goods and services, and how easy it is its audit and collection, unlike taxes levied on income. That is why VAT is the highest-grossing tribute today in many countries.
The VAT tax is more general and less impact on economics, for producers, importers and intermediaries in indirect tax rates, since it is present in all stages of economic activity, from the import, production and extends to all consumers within the territory of each State, along with the neutrality that represents the cumulative non-tax, importers, producers and intermediaries discharge input tax in procurement of goods and services.
However, this tax has an impact on all citizens, even if they are released from other duties, although they have no ability to pay regardless of their status, including within public entities and as well as the private sector, also to foundations and nonprofit associations, for the procurement of goods and services taxes.
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