ITBMS finance
Tax on the Transfer of Movable Goods and Services — Panama’s VAT equivalent, taxing consumption at a general 7% rate.
Detail
ITBMS is the consumption tax administered by Panama’s DGI. The general rate is 7%, with 10% on alcohol and 15% on tobacco. Registered taxpayers charge ITBMS to customers and declare it monthly, deducting the ITBMS paid to suppliers (input credit). For an ERP this means: every sales invoice must compute ITBMS on the taxable base (some lines may be exempt), every purchase invoice records the ITBMS as a credit, and the monthly reconciliation yields a balance payable or refundable. cifraHQ Enterprise models ITBMS as one of several parallel tax jurisdictions — a company with a Mexican branch produces ITBMS in Panama and IVA in Mexico simultaneously, without GL account collisions.
How does cifraHQ model ITBMS?
Let’s schedule a 45-minute technical session with your team to see it in product.