Article 3 of the Mexican Value Added Tax Law Regulation
For the purposes of Article 1o.-A, the last paragraph of the Law, the legal entities obligated to withhold the tax that is transferred to them, shall do so in a lesser amount, in the following cases:
- The withholding shall be made for two-thirds of the tax transferred to them and which has been effectively paid, when the tax is transferred to them by individuals for the following transactions.
- Rendering of independent personal services;
- Rendering of commission services; and
- Granting of the temporary use or enjoyment of goods.
- The withholding shall be made for 4% of the value of the consideration actually paid, when they receive the services of land transportation of goods that are considered as such in terms of the laws of the matter.
Individuals or legal entities that render the services of transportation of goods referred to in the preceding paragraph must make available to the Tax Administration Service the supporting documentation, in accordance with the fiscal dispositions, of the additional amounts to the value of the consideration agreed for the aforementioned services, which are effectively charged to the the person who receives them, for contributions other than value-added tax, travel expenses, travel expenses of all kinds, reimbursements, normal or default interest, conventional penalties, and any other concept, identifying such documentation with such disbursements.