Preliminary administrative requirements for maquiladora value-added-tax exemption certification are being established
Yesterday’s blog post outlined information detailing how Mexico’s national maquiladora association, INDEX, and other export industry stakeholders are pro-actively working with government officals from the country’s Tax Administration Service (SAT), Economics Ministry and its General Administration for the Audit of Foreign Trade (AGACE) to define the rules and processes by which exporters operating under the IMMEX program will be able to qualify for the maquiladora value-added-tax exemption certification for the temporary importation of goods.
Once obtained, certification will allow exporters to import manufactured inputs into Mexico on a temporary basis without paying a sixteen percent VAT levy.
According to information provided through an INDEX communique to its members and maquiladora indusry stakeholders, some of the preliminary obligatory administrative requirements that must be fulfilled by most exporters will oblige them to:
- Submit applications for certification for the maquiladora value-added-tax exemption must be submitted through the VUCE system (the country’s one-stop-shop for foreign trade), or throug a system that containes preloaded company information.
- Install an utilize an inventory control system. There will be no exceptions made to this requirement.
- Obtain a favorable opinion as regards compliance with fiscal requirements of the business seeking certification to receive maquiladora value-added-tax exemption, as well as for business partners, shareholders and legal reresentatives.
- Prove that they are taxpayer in good standing
- Demonstrate that they have committed no tax code violations or infractions in the twelve month period prior to seeking maquiladora value-added-tax exemption.
- Permit visits from representatives of the Tax Administration Service (SAT) to visit their places of business to verify that application details are factual and correct.
- Supply a list of Clients and Suppliers (the process by which this will be handled is currently being refined).
- Fill out the application for certification to receive maquiladora value-added-tax exemption according to the instructions provided, as well as provide supplemental information, documents and photographs that may be required).
The aforementioned information addresses only preliminary administrative requirements which must be fulfilled for export manufacturers to be certified and granted exempltion from paying a sixteen percent VAT tax on the temporary importation of goods. Government authorities, INDEX and other private sector stakeholders are collaborating on the formulation of operational requirements, as well as rules that apply to exporters that are not classified as IMIMEX companies.
Mexico maquiladora association, INDEX, continues to work with federal authorities on 2014 tax reform details.