The VAT is going to impact us all but to what extent? Most of us have questions about if we will have to pay more in rent, at the supermarket, etc. There is a calculator created by La Nación to investigate the effect the tax will have.
With this tool you can enter the amount you are used to paying for different categories and it will provide you with an invoice that will show the difference you can expect to pay. The calculator includes food and equipment, public services and rentals, education, health, entertainment, and rent.
The value added tax started on Monday, July 1. There are certain services that are exempt from the tax, such as gyms and student transportation. Most goods will pay the same 13% they have been subject to but it will be called VAT instead of sales tax.
There will also be new rates of income tax but only on those who earn over ¢2.1 million per month, which is just 4% of the salaried population.
