Mexico grants import VAT relief on temporary imports
- 01 October 2014 | Richard Asquith
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.