28 Jan Interpretation criteria and formalities to be considered by companies authorized under the VAT and IEPS certification program ("VAT and IEPS Certification").
The Tax Administration Service (hereinafter “SAT”, for its acronym in spanish) has been conducting a thorough review to ensure that companies seeking to obtain the VAT and IEPS Certification strictly comply with the requirements established in the current General Foreign Trade Rules (hereinafter the "RGCE", for its acronym in spanish).
In particular, SAT is verifying, both at the time of filing and when reviewing compliance with the VAT and IEPS Certification, that all the requirements set forth in the RGCE are met in order to qualify for a tax credit against the payment of the Value Added Tax and the Special Tax on Production and Services.
This trend has been on the rise, causing difficulties for companies seeking to obtain VAT and IEPS Certification and/or when the SAT verifies their compliance, because some companies are unable to document or to clearly evidence compliance regarding the legal use or enjoyment of the real estate where the operations are carried out.
In order to avoid the aforementioned, it is recommended that all companies seeking to obtain authorization for VAT and IEPS Certification, or that have already been authorized, ensure that the address where they carry out their operations under the IMMEX program is consistent and aligns with both the documents that legally evidence possession of the property and all applicable official records and documents.
Therefore, it is importat that the information and documentation in file is in compliance with the previously mentioned points and if not, rectify it according to the corresponding situation.
At Cuesta Campos we can provide the necessary advice and solution in order to homologate, amend or rectify the above information of the property where the operations are carried out, as applicable to the specific case.
Should you have any questions, require our assistance or additional information, please contact the professionals at Cuesta Campos.
Contact
Berenice Soto García
bsoto@cuestacampos.com
Alejandro Martínez
amartinez@cuestacampos.com
THE ABOVE IS PROVIDED AS GENERAL INFORMATION PREPARED BY PROFESSIONALS WITH REGARD TO THE SUBJECT MATTER. THIS DOCUMENT ONLY REFERS TO THE APPLICABLE LAW IN MEXICO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE ACCURACY, NO RESPONSIBILITY CAN BE ACCEPTED FOR ERRORS OR OMISSIONS. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE RELIED ON AS LEGAL, ACCOUNTING OR PROFESSIONAL ADVICE BEING RENDERED.