VAT refunds in Mexico: deadlines

At the operational level, the average attention period for VAT refunds in Mexico is 17 business days for Small Taxpayers and 22 business days for Large Taxpayers.

Therefore, according to the Ministry of Finance and Public Credit (SHCP), it is not considered that there are long terms for VAT refunds.

In legal terms, article 22, seventh paragraph of the Federal Tax Code establishes a term of 40 business days to make refunds.

From the above, it is observed that the term is less than that established by the Code.

VAT refunds

Likewise, the Miscellaneous Tax Resolution establishes even shorter terms for VAT refund requests for certain sectors.

Notwithstanding the foregoing and in order to continue optimizing the resolution of refund procedures, the Tax Administration Service (SAT) has established several administrative facilities to economically priority sectors (exporters, agricultural, taxpayers making new investments, as well as those related to the production and distribution of food and medicines) so that they can obtain the balances in their favor in a more expeditious manner.

In addition, technological tools have been implemented that allow the refund process to be carried out electronically from end to end, reducing processing and resolution times, for which reason there are no plans to include additional measures to simplify and expedite the process.

Temporary import operations generate VAT and IEPS since January 1, 2014, in accordance with the Decree that amends, adds and repeals several provisions of the Value Added Tax Law; of the Law of the Special Tax on Production and Services; of the Federal Law of Rights, the Income Tax Law is issued, and the Single Rate Business Tax Law, and the Law of the Tax on Cash Deposits are repealed (Official Gazette of the Federation of December 11, 2013).

In Mexico, several domestic taxes -VAT, IEPS and the tax on new automobiles (ISAN)- are levied on both imported and domestic products.