VAT partial

Mexico specifics

A taxable entity that makes taxable supplies and exempt or non-taxable supplies must calculate their input tax credit based on a credit factor. The credit factor is determined based on the percentage of taxable turnover compared with total turnover in the month of the payment. This includes taxable and exempt or non-taxable supplies.

How Infor meets the requirement

Only a portion of the VAT that is charged on the purchase invoice is reclaimable. Create a tax table with two tax codes: One tax code to configure the portion that is reclaimable and another one for VAT that is non-reclaimable. The percentage for each of the tax codes must also be defined.

See the Tax User Guide.