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R12.1:JL:AP: Is IVA deferred one possibility for Mexico? (Doc ID 2462536.1)

Last updated on AUGUST 19, 2019

Applies to:

Oracle Financials for the Americas - Version 12.1.3 and later
Information in this document applies to any platform.

Goal

For Mexico localization,

Is there any functionality for Mexico about a virtual vat? Is IVA deferred one possibility?
Is there anything standard that contemplates this situation? Is there a way to calculate VAT at tax payment time?

The users need to register a virtual VAT at payment time for a service provided by suppliers residing abroad.

Need to make an accounting event at payment time.
This accounting event is related to a concept of "virtual" vat.
There is a vat that must be calculated on the basis of what is paid for import services,
where 16% of the payment must generate an accounting record.

Impact:

The users need to calculate and account VAT tax at payment time (withholding tax).

A VAT must be calculated and registered at the time of payment of invoices. This VAT is not included in the invoice as they are foreign residents who provide the service and by which applies the mechanism we are seeking to do so in Oracle. For tax purposes, these transactions are considered to be imports of services and we need to register them in order to inform the Treasury.
The tax rate is 16% of what is actually paid in each payment.

This is a legal requirement.

Links to the government's web site:

http://omawww.sat.gob.mx/informacion_fiscal/normatividad/Paginas/2018/leyes_2018.aspx


http://omawww.sat.gob.mx/informacion_fiscal/normatividad/Paginas/reglamentos_legislacion.aspx

The laws are:

Ley del Impuesto al Valor Agragado
Reglamento de la Ley del Impuesto al Valor Agregado
Codigo Fiscal de la Federación
 

Solution

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In this Document
Goal
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