October 18, 2014

New Rule on the Accelerated Refund of the Value Added Tax (VAT)


Mexico’s Treasury Department, acting through its Tax Service Administration (SAT), recently decided to add a
new miscellaneous tax rule regarding refunds of the Value Added Tax (VAT) incurred in Investment Projects in
Fixed Assets (Published in the Official Journal of the Federation on October 16, 2014. Rule I.4.1.9.). As such,
as of October 17, 2014, taxpayers that undertake investment projects on fixed assets may be able to obtain
approvals of their refund requests within a maximum time period of 20 business days (with respect to the
acquisition or manufacturing of assets, including the rendering of services or granting the temporary use or
enjoyment of assets relating to the acquisition or manufacturing of the assets).
It is important to note that the same miscellaneous rule I.4.1.9 establishes certain requirements in order for
taxpayers to be able to take advantage of this benefit. Such requirements are as follows:
I. That the VAT applicable to the investments represents at least 50% of the total VAT that is declared.
II. That the refund requested be greater than one million pesos.
III. That the acquisitions relate to new assets acquired or permanently imported beginning as of January
2014, which are permanently used within Mexico (new assets are those used for the first time in
Mexico).
IV. That the payments upon which VAT was incurred were made by means of a check, credit card, debit
card, service card, or electronic transfer of funds.
V. With respect to related parties within a corporate group, VAT payments and credits, as applicable,
must be properly evidenced and documented.

Taxpayers should note that this benefit is being offered only if the requirements established in the rule continue to
be complied with until the conclusion of the investment project. In the case of a taxpayer’s first request for a
refund, the response time shall be the regular time period of 40 business days. Subsequent requests for VAT
refunds shall be resolved within 20 business days.
In conclusion, this benefit is not recommended in certain cases; therefore, prior to filing VAT refund requests, it
is important to review the specific case of each taxpayer.


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Issue 126–October 2014