Temporary importations into Mexico affected by rule changes
Today we are going to talk about the IVA tax change inside of Mexico. In Spanish, IVA means “impuestos sobre el valor agregado.” Essentially, what it is a value-added tax like many other countries have. Mexico has levied a sixteen percent tax change on IVA for importations into Mexico.
Previous to January 1, 2014, companies were allowed to make two types of importations into Mexico: one was temporary and one was permanent. Under temporary terms a product could be imported based upon certain time parameters, be it for six months or for twenty years or for whatever the case may have been. That product could be exited in the prescribed time and not be subject to the levy of any type of tax against the product. Industry has has organized, and has secured a one year exemption from this change in the IVA rules to tax temporary importations into Mexico.
As of July of 2014, companies and other entitites are now going to be able to go through an IVA certification that they can go through which will exempt them from the new IVA rules on temporary importations into Mexico.
John Rippee is the V.P. of Border Solutions for the Tecma Group of Companies’ Secure Origins, Inc.
SecureOrigins, a technology services company is the trusted expert for LiveLogistics© by making certain that companies have the knowledge to make intelligent business-critical decisions when inevitable supply chain disruptions occur.
The company was founded by high tech innovators with over 30 years of proven global leadership in software development and technical services. As a leader in applying emerging technology such as intelligent software agents and unique geospatial design, Secure Origns creates solutions that are rapidly evolving to replace traditional data-centric technology.
The company is leading the new standard, and supplying innovative solutions for today’s global supply chain challenges. Secure Origins elevates cross-border security and supply chain visibility through innovation, and is aligned with government, industry partners and other stakeholders to improve and enhance supply chain security.
Photo credit: Waag Society