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Article 1-A of the Mexican Value-Added Tax Law

Taxpayers that are located in any of the following cases are obligated to withhold the tax that is transferred to them:

  1. Are credit institutions that acquire assets through dation in payment or judicial or fiduciary adjudication.
    1. Are legal entities that:
      1. Receive independent personal services, or temporarily use or enjoy goods, provided or granted by individuals, respectively.
      2. Acquire waste to be used as an input in their industrial activity or for commercialization.
      3. Receive services of land transportation of goods, provided by individuals or legal entities.

        Subsection added DOF 12-31-1999

      4. Receive services rendered by commission agents, when these are individuals.

        Subsection added DOF 31-12-1999

      5. Individuals or legal entities that acquire tangible goods, or use or enjoy them temporarily, that are sold or granted by residents abroad without a permanent establishment in the country.

        Section amended DOF 30-12-2002

      6. [Section IV repealed by the Decree by which several provisions of the Income Tax Law, the Value Added Tax Law, the Special Tax on Production and Services Law and the Federal Fiscal Code are amended, added, and repealed, published in the Official Gazette of the Federation on December 9, 2019.]

The withholding referred to in this article shall not be made by individuals or legal entities that are obligated to pay the tax exclusively for the importation of goods.

Those who make the withholding referred to in this article shall substitute the transferor, service provider or grantor of the temporary use or enjoyment of goods in the obligation of payment and payment of the tax.

The withholder shall withhold the tax at the time the price or consideration is paid and on the amount actually paid, and shall pay it by means of a declaration to the authorized offices, together with the payment of the tax corresponding to the month in which the withholding is made or, in the absence thereof, no later than the 17th day of the month following the month in which the withholding was made, without any crediting, compensation or reduction being possible against the payment of the withholding.

Paragraph amended by the Decree amending, adding and repealing several provisions of the Value Added Tax Law; of the Law of the Special Tax on Production and Services; of the Federal Law of Rights, the Income Tax Law is enacted, and the Single Rate Business Tax Law and the Law of the Tax on Cash Deposits are repealed, published in the Official Gazette of the Federation on December 11, 2013.

The Federal Executive, in the regulation of this law, may authorize a withholding lower than the total tax caused, taking into consideration the characteristics of the sector or productive chain in question, the control of compliance with tax obligations, as well as the demonstrated need to recover the creditable tax with greater opportunity.

Article added DOF 12/31/1998

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