VAT Refund Certificate for Exporting Companies in Mexico

Mexico has a good global trading reputation, since it has 12 free trade agreements with 44 different countries, including Spain, Germany, and China. This means that after completing company formation in Mexico, you can start to investigate when and where you may qualify for a VAT refund under those deals.

The main export products are crude petroleum oils, automobile vehicles for the transportation of people, raw gold, automatic machines for data treatment or processing and their units and machines, apparatus and electrical material. Some of these are available for a VAT refund in Mexico under certain conditions.

Biz Latin Hub can help you in applying for a VAT refund in Mexico to make sure that you have everything in order. With years of direct experience in the country, our array of market leading back-office services will ensure that you are fully legally compliant and allow you to focus on what you do best – growing your business.

How to Apply for a Tax Refund Certificate?

In accordance with the General Foreign Trade Rules for 2015, as of April 8, 2015, companies interested in obtaining certification in the matter of (VAT) and (IEPS) in any way must add the necessary information for each mandatory box, attach to their application in the “Others” section the following:

• Free writing in which the applicant states that it has not been issued a resolution of inappropriateness of the refunds of (VAT) requested in the last 12 months, counted from the date of presentation of the corresponding certification request, whose amount represents more than 20% of the total refunds authorized in said period, provided that the denied amount resulting from the application of said percentage does not exceed five million pesos jointly.
• Acknowledgement that the applicant has updated her e-mail address for the purposes of the Tax Mailbox.

Companies that are up to date with their tax and customs obligations may obtain a certification under Modalities A, AA and AAA, in order to apply a tax credit consisting of an amount equivalent to 100% of the VAT and IEPS for the temporary importation of goods.

This certification is aimed at companies that introduce goods to the customs regimes of temporary import for manufacturing, transformation or repair in maquila programs, or export; of fiscal deposits to undergo the process of assembly and manufacture of vehicles; of manufacturing, transformation or repair in bonded warehouses and strategic bonded warehouses.

The application for VAT and IEPS certification can be submitted at any time through VUCEM.

General and Specific Requirements for a VAT Refund in Mexico

Companies introducing goods under any of the above-mentioned regimes that are interested in obtaining certification must comply with the general and specific requirements according to their specific circumstances.

1. Have entered and filled out the “Request for VAT and IEPS Certification” in the Digital Window according to the registration instructions.
2. To have inventory control in accordance with the provisions of the SAT
3. The applicant, partners, shareholders, legal representative, sole administrator or members of the board of directors, as the case may be, as provided for in Article 32-D of the Code and the RMF, are required to comply with their tax obligations.
4. At the time of submitting the application, not being in the list of companies published by the SAT in terms of articles 69 and 69-B, third paragraph of the Code, with the exception of the provisions of section VI of the aforementioned article 69.
5. That their digital seal certificates are in force and that it has not been proven that any of the circumstances set forth in Article 17-H, Section X of the Code have been violated in the last 12 months.
6. Present proof of the total number of personnel registered with the IMSS and provide documentary support for the payment of employer contributions to the IMSS for at least 10 employees, and in the case of subcontracting of workers, prove that the companies have a positive opinion of compliance with tax obligations, as well as prove that the latter comply with the obligation to withhold and pay the workers’ income tax (ISR).
7. Prove investment in the national territory.
8. Report in the “Request for VAT and IEPS Certification” the name and address of the customers and suppliers abroad with which they carried out foreign trade operations in the immediately preceding fiscal year.
9. Allow at all times access to AGACE personnel to the initial inspection visit, to the compliance supervision visits, as well as to comply with the parameters of the customs regime in which the foreign trade operations are carried out.
10. That they have not been issued a resolution of inappropriateness of the VAT refunds requested in the last 12 months.
11. Exhibit proof that the applicant has updated their e-mail address for the purposes of the authorities.

Types of Exempt Companies

If these companies do not wish to pay VAT on their temporary imports, they will have to be certified, i.e. certify their degree of reliability, therefore, they will be classified as type A, type AA and type AAA companies, consecutively.

• Companies A do not pay VAT at the time of temporary importation, another benefit granted to them is that they will be refunded the balance in favor that is generated in the VAT tax.
• AA companies; other benefits will be added such as self-correction facilities and reduced repayment terms.
• AAA companies additionally receive a reduction in the repayment period.

Biz Latin Hub can help you with a VAT refund in Mexico

Doing business in Mexico is a great opportunity to expand your business horizons. There is so much to learn about the culture and about how Mexicans do business.

If you would like personalized advice, Biz Latin Hub has a group of experts that can offer you guidance for your business in Mexico. In addition to company formation and incorporation, we offer professional accounting, legal, and financial services tailored to you and your company’s needs. Contact us here at Biz Latin Hub for help on getting your business set up in Mexico.

Also, you can learn more about our team of professionals and how they are enabling commercial growth across Latin America.

If you would like more information on how to make a VAT Refund for Exporting Companies in Mexico, please contact us, please contact our team of professionals.