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services or the temporary use and enjoyment of goods, for an amount equivalent to thetax incurred.4.1. Persons Subject to Payment of the VAT, Acts and Activities Taxed, and Rate126C H A P T E R V I IIndividuals and legal entities that carry out in Mexico any taxable acts or activities aresubject to the payment of this tax. The tax residency of the individuals or entities is irrelevant,and therefore, in some cases, nonresidents may also have to pay the tax if theycarry out any of the acts or activities mentioned in the next paragraph, in which casethere would be an obligation to withhold the tax for the one who pays it, if the latter isa tax resident in Mexico.In accordance with Article 1 of the VAT law, the carrying out, within Mexico, of thefollowing acts is taxed with said tax: alienation of goods, provision of independent services,the granting of the temporary use or enjoyment of goods and the importation ofgoods or services. The VAT law defines the circumstances under which each taxed actor activity is considered to have been carried out within national territory.The alienation of goods is considered to have been carried out within Mexico if saidgood is in the country at the moment of being sent to the purchaser and, if it is not sent,if the material delivery of the good by the alienator is carried out in the country. Therefore,in the case of the alienation of goods located abroad and sent on consignment toMexico to the purchaser, VAT will not be incurred when the purchase and sale is perfectedafter said goods have been imported into Mexico.4.2. Taxable Base and Applicable RatesIn the case of alienation of goods, provision of services, and granting of temporary useor enjoyment of tangible goods, the taxable base consists of, among other things, theprice paid as well as any other amount charged to the purchaser, to the one who receivesthe services or to the one who grants the use or enjoyment of tangible goods for othertaxes, rights, normal or penalty interests, liquidated damages, or any other concept.With regard to the importation of tangible goods, the taxable base of VAT will be thevalue used to calculate the general import tax, plus the amount of said tax and any otheramount that must be paid for said importation. Other taxes that may be incurred forimporting tangible goods into Mexico are the Special Tax on Production and Services(STPS) and the Tax on New Cars.As a general rule, VAT must be calculated and paid by applying the rate of 15 percentto the taxable base. Exceptionally, a rate of 10 percent will apply when the actstaxed are carried out by residents in border regions, and provided the material deliveryof goods or the provision of services is carried out in this border region. In the case