IVA (Impuesto sobre el Valor Añadido)
VAT (Value Added Tax)
IVA, short for 'Impuesto sobre el Valor Añadido', is a Spanish term which translates to 'Value Added Tax' in English. This tax is consumption tax added to the price of goods and services. It is called a 'value added' tax because it is imposed on the value that has been added at each stage of production or distribution of goods and services. Therefore, the term 'IVA' is commonly used in Spanish-speaking countries in matters related to economy and finance.
Example sentences using: IVA (Impuesto sobre el Valor Añadido)
El IVA para estos productos es del 21%
The VAT for these products is 21%
This sentence refers to the 'Impuesto sobre el Valor Añadido', or Value Added Tax (VAT), applied to certain products. In many countries, such as Spain, VAT can be as high as 21%. Here, the speaker is explaining that these particular products have a VAT rate of 21%.
No olvides sumar el IVA al precio final
Don't forget to add the VAT to the final price
This phrase explains that in addition to the listed price of an item, Value Added Tax (VAT), or 'Impuesto sobre el Valor Añadido' in Spanish, should also be considered. VAT is often added at the point of sale, so the speaker is reminding someone to add it when calculating the final cost.
El gobierno ha decidido aumentar el IVA
The government has decided to increase the VAT
This sentence refers to a decision by the government to raise the 'Impuesto sobre el Valor Añadido' (VAT), or Value Added Tax. Governments sometimes increase VAT as a way to generate additional revenue. In this case, the speaker is announcing such a change.