• Filing Date: 2020-06-12
  • Form Type: 10-Q
  • Description: Quarterly report
v3.20.1
VALUE-ADDED TAX RECEIVABLE
6 Months Ended
Apr. 30, 2020
VALUE-ADDED TAX RECEIVABLE [Abstract]  
VALUE-ADDED TAX RECEIVABLE

NOTE 6 – VALUE-ADDED TAX RECEIVABLE

Value-added tax (“VAT”) receivable relates to VAT paid in Mexico. The Company estimates that net VAT of $215,961 will be received within 12 months of the balance sheet date. The allowance for uncollectible VAT was estimated by management based upon a number of factors, including the length of time the returns have been outstanding, responses received from tax authorities, general economic conditions in Mexico and estimated net recovery after commissions.

A summary of the changes in the allowance for uncollectible VAT for the six months ended April 30, 2020 is as follows:

Allowance for uncollectible VAT – October 31, 2019  $327,624 
Provision for VAT receivable allowance   15,641 
Foreign currency translation adjustment   (67,361)
Allowance for uncollectible VAT – April 30, 2020  $275,904