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Mexico grants import VAT relief on temporary imports

  • VAT
  • 01 October 2014 | Richard Asquith

Mexico grants import VAT relief on temporary imports

From January 2015, importers of goods for a temporary period will be able to receive a deferral of import VAT under the measures.

Currently, traders without a Mexican VAT or Excise Tax certification are subject to VAT rate at 16% in order to bring the goods into the country. From 2015, these traders will have the option to provide a guarantee or letter of credit to the Mexican Treasury to cover the amount of import VAT in case of default.

Such VAT guarantee schemes are commonplace across Europe, where countries like the Netherlands offer Article 23 import licenses. Belgium last year dropped the requirement for bank guarantees for imports, making it one of the most attractive locations for European VAT importers.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.