Test Value-added tax vat

QUESTION 1: WHY IS IT NECESSARY FOR US AS COACHES TO KNOW HOW THE TAX WORKS?

Naturally, the main benefit of this tax is received by the state in order to raise funds for public affairs projects and the economic infrastructure itself
Knowing this issue is necessary for us as business coaches because it will help us to have answers to the mechanisms of tax and tribute operation for our nation

According to the value added tax laws, it is mandatory to pay VAT to self-employed persons when performing activities such as possession of tangible goods in uses or services
The rendering of services by commission agents is the most frequent case in which we must pay tax
The acquisition of raw materials for industrial activity and its commercialization
The use of goods such as temporary leasing of goods, space or property for a fee is also taxable, in addition to the importation of goods and services

VAT is an indirect tax that we transfer with our services or products to the consumer
The transfer of VAT is charged to customers who consume our product, i.e. it is a value that we can include in our price
Normally, this transfer is clearly explained in a price breakdown where we include the vat when invoicing a payment voucher to the customer
This type of transfer benefits our business with the purpose of collecting our tax fund little by little, otherwise we would pay it out of our pocket and it would represent a loss for our business

The creditable VAT is passed on to the customer when a product is purchased
The creditable VAT invoices must be considered in our accounting so that, in case of payment differences, a tax refund can be requested
If a product is purchased with invoices, it can become creditable upon proof of payment
In case of acquiring a product or service on credit installments it is also included in our invoice to avoid later complications in the tax return and it is legalized at the conclusion of the

In general, public and private educational institutions and health care provided by qualified professionals are exempt from VAT
Also exempt are deliveries of rural and non-building land, insurance or reinsurance services and training
Some mediations lent to financial operations such as cash deposits, credits or loans
VAT exemptions require proper documentation to avoid unnecessary audits in our business

The main importance of vat for taxpayers is to become aware, first in a moral sense, of what our tax contribution represents for the country
Many taxpayers choose to evade taxation without first thinking about the negative impact on the reputation of their business
The payment of taxes as we have seen favors social growth and is a way to keep our company away from illegalities or frauds
The benefits are demonstrated both for our business and for the client who in the end is the one who legally assumes the payment of our tax in his acquisition of our value