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Former Member
Oct 18, 2007 at 09:36 AM

Mexico VAT tax configuration


Hi All,

I have some queation about how to configure the Mexico VAT tax in SAP system.

As I understanding, If my company which located inside of Mexico purchases material from vendor in Mexico, the payment to vendor will include cost of material and VAT tax (VAT input), and the VAT tax rate is depend on my company location.

When my company sale product to customer, the customer will be charged the cost of product sold and VAT tax (VAT output), and the VAT tax rate is depend on location of the customer. So the VAT tax that my company need pay to the Mexican Government is (VAT output - VAT input). In other word, the VAT input amount is calculated after system generated payment to the Vendor, and VAT output amount is calculated after system generate payment from the customer.

How can I configure the system to use this kind of Cash-base method for VAT tax payment?

Thanks for your time