Doing Business

Doing Business in Mexico 2015

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197 Doing Business in Mexico 2015 Taxpayers subject to VAT withholding Certain taxpayers are required to withhold VAT on payments to suppliers of goods and services, including payments made to parties' resident abroad for purchases or leases, among others. Some examples that might require VAT withholding by the payer for the asset or service include, payments to foreign persons for leased assets in Mexico, and purchases from foreign residents of inventory located in Mexico when such foreign resident does not have a permanent establishment within Mexican territory. VAT Refunds and overpayment certification process Favorable balances in VAT returns must be claimed by the taxpayers as a credit against the tax due in subsequent months, until such balance is used up, requested as a refund for the total balance of the overpaid VAT, or offset against other Federal taxes 23

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