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Costco Not Respecting New IVA Laws


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Federal law re:  what IVA (16%) applies to changed as of January 1.  Not to be applied any more to three sectors:  Feminine hygiene products, farm animal feeds (for those destined to human food chain), and pet foods. I called the Vallarta store today and was told "we've never heard of it". Apparently ditto at Animal shelter and LSS.

Yes.... you might think this should be in Furry Friends. But I think it will attract more noise and reaction if placed here.  I sent email to Costco Mexico head office a few moments ago, with 4 on-line news stories re: same, and asked WHY they are not in compliance. (Auto-reply said they'll be back to me in 24 hours).

Suggest a whole bunch more people start taking them to task..... or else doubt anything will happen until and unless PROFECO gets involved. So---- get your squeaky wheels in action and make NOISE!             atencionalsocio@costco.com.mx          (800-801-1111 another option but rang busy too long)

 

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Good to know, Natasha. Thank you. I use Lakeside Shopping service for getting Costco items delivered.  I'm going to check to see if they know.

Lots of people--especially the animal shelters and poor people who love their pets--should be thrilled to know there's no 16% IVa on pet food now.

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53 minutes ago, Natasha said:

Federal law re:  what IVA (16%) applies to changed as of January 1.  Not to be applied any more to three sectors:  Feminine hygiene products, farm animal feeds (for those destined to human food chain), and pet foods. I called the Vallarta store today and was told "we've never heard of it". Apparently ditto at Animal shelter and LSS.

Yes.... you might think this should be in Furry Friends. But I think it will attract more noise and reaction if placed here.  I sent email to Costco Mexico head office a few moments ago, with 4 on-line news stories re: same, and asked WHY they are not in compliance. (Auto-reply said they'll be back to me in 24 hours).

Suggest a whole bunch more people start taking them to task..... or else doubt anything will happen until and unless PROFECO gets involved. So---- get your squeaky wheels in action and make NOISE!             atencionalsocio@costco.com.mx          (800-801-1111 another option but rang busy too long)

 

Thanks for letting us know. Do you have a link to a news report that we can refer to or print out and take with us?

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Tomorrow I will be going to the Riberas pet place (the large one next to the vet) to buy 4 cases of canned dog food (that I mix with dry) for my 3 hungry dogs. Does anyone know if they have got the news yet? Could save me a nice hunk of pesos!!!

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1 minute ago, gringohombre said:

Tomorrow I will be going to the Riberas pet place (the large one next to the vet) to buy 4 cases of canned dog food (that I mix with dry) for my 3 hungry dogs. Does anyone know if they have got the news yet? Could save me a nice hunk of pesos!!!

as of yesterday, according to a friend, they did not

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24 minutes ago, Lexy said:

Good to know, Natasha. Thank you. I use Lakeside Shopping service for getting Costco items

According to a friend who uses them, they are  unable to get the discount at Costco yet.

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By the way.... would someone who uses FB PLEASE post?   

Also...... dry goods manager in Walmart yesterday (Sergio) said they did know about the feminine products but had heard nada re: pet foods.  He said "we will ask head office".  Suggest they are also bombarded with printouts.... or someone else can take a turn and contact Walmart Mexico.

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The new law came into effect in 2022 so I would imagine that they will say that thier inventory was bought before that and they had to pay it then, and drag this on for as long as they can into this year and charge the customers!!!

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20 minutes ago, gringohombre said:

The new law came into effect in 2022 so I would imagine that they will say that thier inventory was bought before that and they had to pay it then, and drag this on for as long as they can into this year and charge the customers!!!

The way I read it on the sites mentioned, they can't do that. There appears to be a way fro them to regain what they paid.  Not familiar enough with the IVA process going up the chain to comment.  But since WM WAS applying the zero IVA to feminine stuff yesterday, your theory doesn't totally hold water.

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Lakeside Shoppers  were informed about the  Jan 1st   no IVA on pet foods, but , when they did shopping there at Costco   Costco would not budget about not taxing their pet food purchases. The Shoppers  are trying to stay on top of the problem, as it presents a problem for them also, which they did not create. The  Shoppers can not absorb the cost of the IVA  tax  themselves , and offered two choices   yes,  bring my delivery and I will pay the IVA [ demanded by Costco ] on this  order , or ,  cancel  the order . Hopefully  the pet food sellers  will  become aware of the law and follow it ...  

Within  the new  law there is a mechanism available to the seller to recover the taxes [ from the govt ] they paid when they bought the pet food they have for sale..                     of course it may be  work to get that accomplished, so possibly it may be  easier to say they were not aware of the law, and keep taxing the customer until they sell all of that  pet food supply  they paid IVA on.  And thinking when they buy a new supply, the seller will not be charged the IVA, and then [ hopefully ] will not charge the customer the IVA because the customer is  not aware of the law, and does not speaks up  if charged an IVA on their pet food purchase.  

This  no IVA tax only applies to pet food, not other  pet items like kitty litter, which will continue to be taxed,  like toilet paper, etc.. . 

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33 minutes ago, ibarra said:

I paid less yesterday at PetPlace than I did a month ago for same items. I believe they are not charging iva.

When you say PetPlace, do you mean the one in Riberas next to the vet...the one with the cats for adoption?

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Costco most likely needs time to reprogram the cash registers to eliminate the IVA tax on every single item that is now exempt when they are scanned.

OXXO put the added taxes on cigarettes, sodas and liquor etc. on Monday the 3rd. not Sat. the 1st.

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31 minutes ago, AlanMexicali said:

Costco most likely needs time to reprogram the cash register

Doubt that since they specifically told me today they knew nothing of it.  AND this did not happen in a snap.... it was proposed, debated, and put into law long before the end of the year.... to go into effect Jan 1. 

Will let you know if and when I get a response to the email I sent them today beside "auto-reply". 

1 hour ago, gringohombre said:

When you say PetPlace, do you mean the one in Riberas next to the vet...the one with the cats for adoption?

NO..... that's another place completely. As for Riberas:  Already told you: as of yesterday, according to a friend, they did not

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21 minutes ago, Natasha said:

Doubt that since they specifically told me today they knew nothing of it.  AND this did not happen in a snap.... it was proposed, debated, and put into law long before the end of the year.... to go into effect Jan 1. 

Will let you know if and when I get a response to the email I sent them today beside "auto-reply". 

NO..... that's another place completely. As for Riberas:  Already told you: as of yesterday, according to a friend, they did not

I was asking ibara not YOU regarding HIS post "I paid less yesterday at PetPlace than I did a month ago for same items. I believe they are not charging iva."  Do not understand why you are answering a question I put to another poster!!!

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3 hours ago, gringohombre said:

When you say PetPlace, do you mean the one in Riberas next to the vet...the one with the cats for adoption?

No.  PetPlace is closer to Chapala.  Mountain side, just past GDL Farmacia.  You are thinking of the Animal Shelter next to Ladron Vets. 

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I have no idea how the IVA is balanced in Mexico. In Canada when you own a retail business, you pay GST (IVA in Mexico) on your stock purchases and you charge GST on the stock you sell to the public. The difference between the two is sent into the Government.

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14 minutes ago, Ferret said:

The difference between the two is sent into the Government.

I'm not sure what you mean by "the difference between the two", but it works the same way in Mexico it works in Canada. It is charged at each stage of an exchange of goods and services for $, and ends up being the charge for the end user, as the transactions preceding that get deducted. 

So I purchase fabric for my upholstery business, on which I am charged IVA. I then charge the customer for the fabric plus the IVA, and can deduct the IVA I paid for that fabric from any IVA I owe the govt.

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Exactly the same. You deduct the GST (IVA) that you have paid for the stock from the GST (IVA) that you have collected from selling the stock. The difference is what you send into the goverment as your remittance for the time period (in Canada every month).

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2 hours ago, mudgirl said:

There is no forum rule about a poster answering a question regardless of who it was directed to.

I asked a question as a response to a specific poster about his post, so nobody should be butting in since I was asking that specific poster, so you also please butt out!!!

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