ARTICLE 27: CALCULATION OF VALUE-ADDED TAX (VAT) ON THE ALIENATION OF USED CARS AND TRUCKS

     

    For the purposes of article 8 of the Law (LIVA: Art. 8), to calculate the tax in the case of the alienation of used cars and trucks, acquired from individuals who do not expressly and separately transfer the tax, shall be deemed the value determined in accordance with the article 12 of the Law (LIVA: Art. 12), which may be subtracted from the cost of acquiring the property in question, not including expenses caused from the repair or improvements made therein. The tax that has been transfer by said repairs or improvements will be creditable in the terms and with the requirements established by the Law.

    The taxpayer when acquiring used cars and trucks must meet the following requirements:

  • Make the corresponding payment by means of a check in the name of the seller, and
  •  

  • Keep a copy of the invoice, an official identification of the seller and the other documents in which the name, address and, where appropriate, the federal taxpayer registration of the seller, as well as the brand, type, model year, engine and body serial numbers, corresponding to the vehicle.