Myammee Hair Weave Line

Basis for calculating VAT and Retefuente

The value taken for calculating the VAT and withholding tax on an invoice is the same, ie the basis for the two cases is the value before taxes eg a purchase of $ 100,000 has VAT 16%, calculated on the basis ($ 100,000) up to $ 16,000. Likewise, the withholding tax is calculated on the same basis of $ 100,000 and not over $ 116,000, thus the Retefuente a purchase of 3.5% is $ 3,500 in this case.



100,000 Purchase Price VAT 16% ; Buy
16,000 Total 116,000

already said that the withholding tax for this purchase (3.5%) is $ 3,500, calculated on the same basis of $ 100,000.

When we go to cancel such invoice, the payment is not made by the $ 116,000 of the total purchase, because we discount the Retefuente as follows: Total purchase

;
116,000 3,500 3.5% Less Retefuente
112,500 payment value

remember that these deductions , must be declared and paid monthly and VAT every two months.