Don’t do the math

One of the hardest things for foreigners here to wrap their minds around is that we do have a “sales tax” … or rather IVA — Impuesto al Valor Agregado — a value added tax, but it’s part of the listed price. That is, if the list price is 100 pesos, the price is actually 87 pesos, plus 15% tax.

Simple enough.  But, for Mexicans (and most Latin Americans and Europeans) paying a tax on top of the purchase prce, and discovering that the five dollar purchase is $5.40 or whatever can be slightly confusing.

And ten percent for me, mwahaaahaaahhaaahaa!

Groceries are not taxed in Mexico, nor in most places in the United States… though one Colorado food chain has taken it on themselves to charge an extra ten percent, “…for taxes in Mexico and we think that people would feel better if they are charged for taxes as if they were in Mexico.”

From Pandagon:

The Nash Finch stores Avanza, Food Bonanza and Wholesale Food Outlets add the 10 percent charge to food at the register and specialize in serving Hispanics, according to store workers.

However, the Nash Finch stores Sun Mart Foods, Econo Foods, Family Fresh Market, Pick N Save and Prairie Market stores do not charge extra at the register and do not cater to Hispanics, according to the store workers.

For the record, Secretaría de Hacienda y Crédito Público does not receive ten percent of sales from grocery stores in Colorado.