Mexico has issued its latest VAT payers ‘blacklist’. This details all businesses that its suspects of VAT fraud. It is a requirement for other businesses to ensure their suppliers and businesses are not on the list. Any invoices from listed businesses will have no validity for VAT – for example, buyers will not be able to deduct input VAT paid to blacklisted businesses.
The businesses on the list have failed to provide sufficient evidence on audit questions, including: request for proof of ownership of assets; evidence of a functional business or infrastructure; and other investigation issues.
Published blacklists are becoming increasingly common in the fight against VAT fraud.
