Mexico’s Tax Administration Service is Accepting Requests to Obtain VAT and STPS Certification

Mexico’s 2013 Tax Reform eliminated the exemptions for Value Added Tax (VAT) and Special Tax on Production and Services (STPS) on the temporary import of goods by the maquila industry. It also increased the VAT on border states from 11% to 16%. Payment of VAT and STPS on temporary imports will begin on January 1, 2015.

To compensate the effects of this reform, certain companies that are up to date in the payment of their tax and customs obligations will be able to obtain VAT and STPS certification under the A, AA and AAA modes.

The benefits of obtaining the certification include, among others, a VAT and STPS tax credit of the amounts that should be paid for the temporary import of goods. AA and AAA modes have additional benefits, such as a longer certification term. Certified companies may also obtain a return of any additional VAT payment.

From April 1 through April 30, the Tax Administration Service will be accepting certification requests from certified Authorized Economic Operators under the New Scheme for Authorized Companies and from companies in the automotive industry.

All other maquila companies may file their requests within a period that varies according to their tax domicile:

– For companies located in the North Pacific area, within the jurisdiction of the Baja California office, the period will be from April 15 through May 15;

– For companies in the Northeast, within the jurisdiction of the Nuevo Leon office, from June 3 through July 3;

– For companies in the North Central area, within the jurisdiction of the Coahuila office, from July 7 through August 7;

– For companies in Central area, within the jurisdiction of the Federal District office, from August 7 through September 8; and

– For companies in the West and South area, within the jurisdiction of the Jalisco and Veracruz offices, from September 22 through October 22.

Should any maquila company fail to file its request within the established period, they may file it at any time, but will risk delays in obtaining the certification and tax credit.

For questions and assistance with the VAT and STPS certification process, IMMEX, and related issues and planning strategies for a maquila operation in Mexico, please contact Counsel, Brenda Cisneros Vilchis at bcisneros@yormicklaw.com or Managing Attorney, Jon P. Yormick, at jon@yormicklaw.comor by calling +1.866.967.6425 (Toll free in Canada & U.S.), Office: +1.216.928.3474, or Mobile: +1.216.269.5138.

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