What is the VAT Certification?
The VAT Certification is a crucial scheme in Mexico’s foreign trade sector. This initiative, offered by the country’s tax authority, allows companies to obtain a 100% tax credit for the Value Added Tax (VAT) and the Special Tax on Production and Services (IEPS) paid upon the temporary importation of goods, which are subsequently destined for export. In essence, this certification simplifies and optimizes the tax burden for companies at the time of the importation of goods, significantly improving their competitiveness in the international market.
Benefits of the VAT Certification:
The benefits of obtaining the VAT Certification are significant. In addition to not having to pay VAT on imports at the time of importation, that is, a saving of 16% on the customs value of the merchandise, certified companies can use their VAT credit balance to improve cash flow and reduce operating costs. This results in greater competitiveness, as companies can offer more attractive prices in international markets. Moreover, this program facilitates compliance with tax and customs obligations, avoiding potential penalties and legal issues. In short, VAT Certification is an essential tool for companies looking to expand into international trade.
At Tradeworks, we are committed to providing our clients with comprehensive services in the field of foreign trade, including the management of procedures to obtain the VAT Certification. Our team of experts in international trade is highly trained and has a deep understanding of Mexican legislation and regulations. We guide companies through the entire application and compliance process for this program, ensuring that they fully capitalize on the available tax benefits. With TradeWorks, companies can rely on efficient management of their tax and customs obligations, allowing them to focus on their growth and success in international markets.