Let us remember that…

Taxes are a type of tribute, the most important ones. Another type of taxes are fees.

Taxes are classified into direct and indirect taxes.

Direct taxes tax the economic capacity of individuals. The most important is the personal income tax, which taxes income (i.e., the income a citizen earns in a year). Other direct taxes are the wealth tax, which is the wealth that a citizen possesses; Corporate tax, which is levied on companies; and the inheritance and gift tax.

Of the indirect taxes, the most important is VAT. It taxes consumption and is based on the value that products acquire as they are manufactured or distributed.

The consumer pays this tax on the price of the product they consume, which must be declared by the person selling the product or service to the consumer. There are products that are exempt from VAT , while others, essential products, have a rate of 4%. There is also a 10% rate for other products. 21% is the general VAT rate.