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MEXICAN VALUE ADDED TAX LAW IN ENGLISH
New Law published in the Official Gazette of the Federation on December 29, 1978.
CURRENT TEXT
Last amendment published DOF 12-11-2021
On the margin a seal with the National Coat of Arms, which reads: Estados Unidos Mexicanos -Presidencia de la República,
JOSE LOPEZ PORTILLO, Constitutional President of the United Mexican States, to its inhabitants, be it known:
That the H. Congress of the Union has addressed to me the following
DECREE
The Congress of the United Mexican States, decrees:
VALUE ADDED TAX LAW
CHAPTER I
General Provisions
Article 1o .- The payment of the value added tax established in this Law shall be payable by individuals and corporations that, in Mexican territory, perform the following acts or activities:
Amended paragraph DOF 12/30/1980
- Dispose of goods.
- Provide independent services.
- Grant the temporary use or enjoyment of goods.
- Import goods or services.
The tax will be calculated by applying the rate of 16% to the values indicated in this Law. In no case shall the value added tax be considered part of such values.
Amended paragraph DOF 12/31/1982, 11/21/1991, 03/27/1995, 12/07/2009
The taxpayer shall transfer such tax, expressly and separately, to the persons who acquire the goods, use or enjoy them temporarily, or receive the services. The transfer of the tax will be understood as the collection or charge that the taxpayer must make to such persons of an amount equivalent to the tax established in this Law, including when it is withheld under the terms of articles 1-A, 3, third paragraph or 18-J, section II, paragraph a) of the same.
Amended paragraph DOF 31-12-1998, 09-12-2019
The taxpayer will pay at the authorized offices the difference between the tax payable and the tax that would have been transferred to him or that which he would have paid in the importation of goods or services, provided that they are creditable under the terms of this Law. If applicable, the taxpayer shall deduct the tax withheld from the tax payable.
Amended paragraph DOF 12/31/98
The transfer of the tax referred to in this article shall not be considered a violation of prices or tariffs, including official ones.
Article 1o.-A .- Taxpayers who are in any of the following situations are obliged to withhold the tax transferred to them:
- They are credit institutions that acquire assets through dation in payment or judicial or fiduciary adjudication.
-
Are legal entities that:
-
Receive independent personal services, or temporarily use or enjoy goods provided or granted by individuals, respectively.
- Acquire waste to be used as an input in their industrial activity or for commercialization.
-
Receive services of land transportation of goods, rendered by individuals or legal entities.
Subsection added DOF 12-31-1999
-
Receive services rendered by commission agents, when these are individuals.
Subsection added DOF 12-31-1999
-
-
Individuals or legal entities that acquire tangible goods, or temporarily use or enjoy them, that are sold or granted by residents abroad without a permanent establishment in the country.
Reformed fraction DOF 12-30-2002
-
(Repealed).
Section added DOF 12/30/2002. Amended DOF 01-12-2004, 07-06-2005. Repealed DOF 11-12-2013. Added DOF 09-12-2019.
Repealed DOF 23-04-2021.
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 to pay and pay 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 through a declaration at the authorized offices, together with the payment of the tax corresponding to the month in which the withholding is made or, in its absence, 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 amount of the withholding.
Amended paragraph DOF 30-12-2002, 11-12-2013
The Federal Executive, in the regulations of this law, may authorize a withholding lower than the total tax incurred, 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 in a more timely manner.
Article added DOF 31-12-1998
Article 1o.-A BIS .- Taxpayers resident in Mexico that provide the digital services referred to in Section II of Article 18-B of this Law to recipients located in Mexican territory, who operate as intermediaries in activities carried out by third parties subject to the payment of value added tax, in addition to the obligations established therein, shall be obliged to comply with the obligations referred to in Article 18-J of this Law.
Individuals and corporations that carry out activities subject to the payment of value added tax through the taxpayers referred to in this Article must comply with the provisions of Articles 18-K, 18-L and 18-M of this Law, as applicable.
Article added DOF 09-12-2019
Article 1o.-B - For the purposes of this Law, consideration is considered effectively collected when it is received in cash, goods or services, even when they correspond to advances, deposits or any other concept regardless of the name by which they are designated, or when the creditor's interest is satisfied through any form of extinction of the obligations giving rise to the consideration.
When the price or consideration agreed for the sale of goods, the rendering of services or the granting of the temporary use or enjoyment of goods is paid by check, it is considered that the value of the transaction, as well as the corresponding value added tax transferred, were effectively paid on the date of collection of the check or when the taxpayers transfer the checks to a third party, except when such transfer is in procuration.
It is presumed that the negotiable instruments other than checks subscribed in favor of the taxpayers, by whoever acquires the good, receives the service or temporarily uses or enjoys the good, constitute a guarantee of the payment of the agreed price or consideration, as well as the value added tax corresponding to the transaction in question. In these cases, both concepts will be understood to have been received by the taxpayers when they effectively collect them, or when the taxpayers transfer the documents pending collection to a third party, except when such transfer is by proxy.
When in connection with the sale of goods, the rendering of services or the granting of the temporary use or enjoyment of goods, taxpayers receive documents or vouchers, in respect of which a third party assumes the payment obligation or receive payment through electronic cards or any other means that allows the user to obtain goods or services, it will be considered that the value of the respective activities, as well as the corresponding value added tax, were effectively paid on the date on which such documents, vouchers, electronic cards or any other means are received or accepted by the taxpayers.
Article added DOF 30-12-2002
Article 1o.-C .- Taxpayers that transfer documents pending collection through a financial factoring operation, will consider that they receive the agreed consideration, as well as the value added tax corresponding to the activity that gave rise to the issuance of such documents, at the time they transfer the documents pending collection.
The taxpayers referred to in the preceding paragraph may choose to consider that the consideration corresponding to the activities that gave rise to the issuance of the aforementioned documents is received until said documents are collected, provided that the following is complied with:
- In the contracts covering the transfer of the documents pending collection, it must be stated whether the assignors of the documents exercise the option provided for in the second paragraph of this article, or whether they will be subject to the provisions of the first paragraph. In the first case, it must be specified whether the collection will be the responsibility of the assignor, the acquirer or a third party.
- Those who transfer the documents pending collection will be responsible for paying the value added tax corresponding to the total amount stated in said documents, without deducting from the total amount, the amount corresponding to the financial charge collected by the acquirer.
-
The purchasers of the documents pending collection must deliver to the taxpayers within the first ten calendar days of each month, monthly account statements in which the amounts that have been collected in the immediately preceding month for the documents pending collection that have been transferred to them, the dates on which the collections were made, as well as the discounts, rebates or bonuses that the purchasers have granted to the debtors of the documents pending collection. The account statements must comply with the requirements established in Article 29-A of the Federal Tax Code. Additionally, the taxpayers must comply with the general obligations established in this Law regarding the issuance of receipts, with respect to the collections reported by the acquirers for the assigned documents, and the dates and amounts contained in such receipts must coincide with the data provided by the acquirers in the aforementioned account statements.
In any case, the person who delivers to the debtor the vouchers of the transactions that gave rise to the issuance of the documents pending collection, shall record in such vouchers the amount actually paid by the debtor, when the purchasers have granted discounts, rebates or bonuses.
-
When the acquirers collect the documents pending collection, either totally or partially, they must state the amount collected with respect to the corresponding document in the account statement they issue, with which the assignors of the documents must determine the value added tax payable by them, without deducting from such value the amount corresponding to the finance charge collected by the acquirer. For such purposes, the value added tax will be calculated by dividing the amount stated in the statement of account as collected by the acquirer by 1.16. The result obtained will be subtracted from the amount stated in the statement of account as collected and the difference will be the value added tax payable by the taxpayer that assigned the documents pending collection.
Reformed fraction DOF 07-12-2009, 11-12-2013
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When six months have elapsed from the due date of payment of the documents pending collection, without the amounts reflected in said documents having been collected by the acquirers or a third party directly from the original debtor and are not due from the assignor of the documents pending collection, The latter shall consider the value added tax payable by him as incurred on the first day of the month following the period referred to in this paragraph, which shall be calculated by dividing the amount paid by the acquirer in the acquisition of the document, without deducting from such value the amount corresponding to the finance charge collected by the acquirer, by 1.The result obtained shall be subtracted from the amount paid by the acquirer in the acquisition of the aforementioned documents, without deducting from such value the amount corresponding to the finance charge, and the difference shall be the value added tax payable by the taxpayer that assigned the documents pending collection.
Amended paragraph DOF 07-12-2009, 11-12-2013
When the acquirer has made a partial collection on account of the total consideration set forth in the documents pending collection, the assignor of the aforementioned documents may deduct from the value added tax determined at its expense in accordance with the preceding paragraph, the value added tax previously determined for such partial collection, in accordance with the provisions set forth in section IV above.
-
In the case of recoveries after the sixth month of the due date of payment of the documents pending collection referred to in section V above, of amounts whose amount added to those previously collected corresponding to the same document is greater than the sum of the amounts received by the transferor as payment for the sale of the documents pending collection, without deducting the finance charge, and including the advances, if any, received, the acquirer must report such recoveries in the statement of account of the month in which they are collected. The taxpayer shall calculate the value added tax payable by the total amount collected by the acquirer, dividing the value of the collection made by 1.16. The result obtained shall be subtracted from the total amount collected and the difference shall be the value added tax payable by the assignor.
Amended paragraph DOF 07-12-2009, 11-12-2013
The tax payable by the taxpayer determined in accordance with the preceding paragraph shall be reduced by the tax payable previously determined in accordance with the provisions of section V of this article.
When the acquirers omit to provide the transferor with the account statements corresponding to the collections referred to in this section, they will be liable in lieu of payment of the tax corresponding to the additional recovery, when such omission is discovered by the tax authorities.
-
When the acquirers dispose of documents pending collection to a third party, they shall be responsible for obtaining from the third party the information relative to the amounts collected for the documents that have been disposed of, as well as the dates on which said collections are made, for the purpose of including said information in the account statements referred to in Section III above.
When the collection of the documents pending collection is the responsibility of the assignor, the acquirer shall not be obliged to provide the account statements referred to in this article, and the assignor of the aforementioned documents shall determine the value added tax to be paid by the acquirer under the terms established in section IV of this article.
The provisions of this article shall not be applicable when the documents pending collection assigned have their origin in an activity that is exempt from payment of value added tax or is subject to the 0% rate.
When taxpayers exercise the option referred to in the second paragraph of this article, they must maintain it during the calendar year in which it is exercised, with respect to all documents pending collection that they transfer.
Article added DOF 30-12-2002
Article 2o . (Repealed).
Article repealed DOF 11-21-1991. Added DOF 03-27-1995. Amended DOF 12-30-2002, 12-07-2009. Repealed DOF 11-12-2013
Article 2o.-A .- The tax shall be calculated by applying the 0% rate to the values referred to in this Law, when the following acts or activities are carried out:
-
The alienation of:
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Animals and vegetables that are not industrialized, except rubber, dogs, cats and small species used as pets in the home.
Amended paragraph DOF 11-12-2013
For these purposes, wood in pieces or debarked wood is considered to be non-industrialized.
Paragraph added DOF 12/30/2002
Section amended DOF 11-21-1991
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Patent medicines and products intended for human and animal feed, with the exception of:
Amended paragraph DOF 12-11-2021
- Beverages other than milk, even when they have the nature of food. Included in this numeral are juices, nectars and fruit or vegetable concentrates, whatever their presentation, density or the weight of the content of these materials.
- Syrups or concentrates for the preparation of soft drinks that are sold in open containers using electrical or mechanical devices, as well as concentrates, powders, syrups, essences or flavor extracts that when diluted make it possible to obtain soft drinks.
- Caviar, smoked salmon and elvers.
-
Flavorings, microencapsulates and food additives.
Item added DOF 12-31-1999
-
Chewing gum.
Item added DOF 11-12-2013
Processed food for dogs, cats and small species, used as pets in the home.
Item added DOF 11-12-2013
Subsection amended DOF 12/31/1982, 12/15/1995
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Ice and non-carbonated and non-compounded water, except when in the latter case, its presentation is in containers smaller than ten liters.
Subsection amended DOF 11-21-1991
- Ixtle, palm and lechuguilla.
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Tractors for driving agricultural implements, with the exception of tracked tractors, as well as tires for such tractors; power tillers for reduced surfaces; plows; harrows for breaking up plowed land; cultivators for spreading and weeding; harvesters; sprayers and sprinklers for spraying or spreading fertilizers, pesticides, herbicides and fungicides; mechanical, electrical or hydraulic equipment for agricultural irrigation; seeders; silage, forage cutters and balers; threshing machines; manure spreaders and fertilizer spreaders; crop spraying airplanes; manual chain saws, as well as commercial fishing boats, provided they meet the requirements and conditions set forth in the Regulations.
Amended paragraph DOF 12/28/1994
The rate indicated in this article will be applied to the sale of the machinery and equipment referred to in this subsection, only if they are sold complete.
- fFertilizers, pesticides, herbicides and fungicides, provided they are intended for use in agriculture or livestock.
- Hydroponic greenhouses and equipment integrated to them to produce controlled temperature and humidity or to protect the crops from natural elements, as well as irrigation equipment. Subsection added DOF 12/28/1994
- Gold, jewelry, gold work, artistic or ornamental pieces and ingots, whose minimum content of such material is 80%, provided that their sale is not carried out in retail sales to the general public. Subsection added DOF 12/28/1994
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Books, newspapers and magazines published by the taxpayers themselves. For the purposes of this Law, a book is considered to be any non-periodical, unitary publication, printed on any support, whose edition is made in one volume or in several volumes. The concept of books does not include periodical publications under the same title or denomination and with different content from one publication to another.
Complementary materials that accompany the books are also considered to be part of the books when they cannot be marketed separately. It is understood that they do not have the characteristic of being complementary when the materials can be marketed independently from the book.
Section added DOF 12/30/2002. Amended DOF 12/31/2003
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Sanitary napkins, tampons and cups, for menstrual management.
Subsection added DOF 12-11-2021
The 16% rate shall be applied to the sale of the foods referred to in this article prepared for consumption at the place or establishment where they are sold, even when they do not have facilities to be consumed therein, when they are for take-out or home delivery.
Amended paragraph DOF 31-12-1982, 26-12-1990, 21-11-1991, 30-12-2002, 01-10-2007, 07-12-2009, 11-12-2013
-
-
The rendering of independent services:
-
Those rendered directly to farmers and ranchers, provided they are destined for agricultural activities, for well drilling, lighting and formation of water reservoirs; supply of electric energy for agricultural uses applied to pumping water for irrigation; clearing and roads within agricultural farms; land preparation; agricultural irrigation and fumigation; pest eradication; harvesting and harvesting; vaccination, disinfection, disinfection, vaccination and disinfection of pesticides; clearing and roads within agricultural farms; land preparation; agricultural irrigation and fumigation; pest eradication; harvesting and gathering; vaccination, disinfection and insemination of livestock, as well as the capture and extraction of marine and freshwater species.
Section amended DOF 12/28/1994
- Those of milling or crushing of corn or wheat.
- Milk pasteurization.
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Those provided in hydroponic greenhouses.
Subsection added DOF 12/28/1994
-
Those of cotton ginning in branch.
Subsection added DOF 12/28/1994
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Those of cattle and poultry slaughter.
Subsection added DOF 12/28/1994
-
Those of reinsurance.
Subsection added DOF 12/28/1994
-
Those of water supply for domestic use.
Subsection added DOF 12-30-2002
-
-
The temporary use or enjoyment of the machinery and equipment referred to in paragraphs e) and g) of section I of this article.
Reformed fraction DOF 12/28/1994
-
The export of goods or services, under the terms of Article 29 of this Law.
The acts or activities to which the 0% rate is applied will produce the same legal effects as those for which the tax must be paid in accordance with this Law.
Article added DOF 30-12-1980
Article 2o.-B .- (Repealed).
Article added DOF 12/31/1982. Amended DOF 26-12-1990, 21-11-1991, 20-07-1992, 27-03-1995. Repealed DOF 15-12-1995
Article 2o.-C . (Repealed).
Article added DOF 12/31/1982. Amended DOF 21-11-1991, 29-12-1997. Amounts updated DOF 12-02-2002, 05-07-2002, 20-01-2003. Amended DOF 12-31-2003, 12-01-2004, 12-23-2005. Repealed DOF 11-12-2013
Article 2o.-D .- (Repealed).
Article added DOF 12-26-1990. Repealed DOF 21-11-1991
Article 3o .- The Federation, the Federal District, the States, the Municipalities, decentralized agencies, private charitable institutions and associations, cooperative societies or any other person, even if according to other laws or decrees they do not cause federal taxes or are exempt from them, must accept the transfer referred to in Article 1 and, if applicable, pay the value added tax and transfer it, in accordance with the provisions of this Law.
The Federation, the Federal District, the States, the Municipalities, as well as their decentralized agencies and public social security institutions, will have the obligation to pay the tax only for the acts they perform that do not give rise to the payment of duties or benefits, and may only credit the value added tax that has been transferred to them in the disbursements or that paid on importation, which is identified exclusively with the activities for which they are obligated to pay the tax established in this Law or for which the 0% rate is applicable. For the crediting referred to above, the requirements set forth in this Law must be complied with.
Amended paragraph DOF 12/31/1982, 12/28/1989, 11/21/1991, 12/28/1994, 03/27/1995, 12/30/2002, 12/01/2004, 12/01/2004, 06/07/2005
The Federation and its decentralized agencies shall also withhold in the terms of Article 1o.-A of this Law when they acquire goods, use or enjoy them temporarily or receive services from individuals, or from residents abroad without a permanent establishment in the country in the case provided for in Section III of the same Article. The withholding shall also be made under the terms of Article 1o.-A of this Law, in the cases in which the Federation and its decentralized agencies receive land transportation services of goods rendered by legal entities. The States, the Federal District and the Municipalities, as well as their decentralized agencies, shall not withhold the withholding referred to in this paragraph.
Paragraph added DOF 12/31/1998. Amended DOF 31-12-1999, 30-12-2002.
For the purposes of this tax, in addition to those indicated in the Federal Tax Code, individuals or corporations residing abroad that have one or more establishments in Mexico are considered residents of Mexico, for all acts or activities carried out therein.
Paragraph added DOF 12/30/1980
Article 4 - The crediting consists of subtracting the creditable tax from the amount resulting from applying the corresponding rate, as the case may be, to the values indicated in this Law.
For the purposes of the preceding paragraph, creditable tax is understood to be the value added tax that has been transferred to the taxpayer and the tax paid by the taxpayer on the importation of goods or services in the month in question.
The tax transferred for the services referred to in Article 15-D, first and second paragraphs of the Federal Fiscal Code, will not be creditable under the terms of this Law.
Paragraph added DOF 23-04-2021
The right to the credit is personal for value added taxpayers and may not be transferred by an inter vivos act, except in the case of a merger. In the case of a spin-off, the crediting of the tax pending to be credited at the date of the spin-off can only be made by the spin-off company. When the splitting company disappears, the provisions of the antepenultimate paragraph of Article 14-B of the Federal Tax Code will apply.
Article amended DOF 31-12-1979, 30-12-1980, 31-12-1982, 31-12-1999, 31-12-2000, 30-12-2002, 01-12-2004, 07-06-2005
Article 4-A. For the purposes of this Law, acts or activities not subject to the tax are understood to be those that the taxpayer does not carry out in national territory in accordance with the provisions of Articles 10, 16 and 21 of this ordinance, as well as those different from those established in Article 1 of this Law carried out in national territory, when in the mentioned cases the taxpayer obtains income or consideration, for which it makes expenses and investments in which the value added tax was transferred or that which it would have paid for the importation.
When this Law refers to the value of the acts or activities referred to in this article, such value shall correspond to the amount of income or consideration obtained by the taxpayer for their performance in the month in question.
Article added DOF 26-12-1990. Amended DOF 1994-12-28, 1999-12-31. Repealed DOF 12-30-2002. Added DOF 01-12-2004. Repealed DOF 07-06-2005. Added DOF 12-11-2021.
Article 4o.-B . (Repealed).
Article added DOF 29-12-1997. Amended DOF 12/31/2000. Repealed DOF 12-30-2002. Added DOF 12-01-2004. Repealed DOF 07-06-2005.
Article 4.-C (Repealed).
Article added DOF 12-01-2004. Repealed DOF 07-06-2005
Article 5 - In order for the value added tax to be creditable, the following requirements must be met:
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That the value added tax corresponds to goods, services or the temporary use or enjoyment of goods, strictly indispensable for the performance of activities other than importation, for which the tax established in this Law must be paid or to which the 0% rate is applied. For the purposes of this Law, expenditures made by the taxpayer that are deductible for income tax purposes are considered strictly indispensable, even when the taxpayer is not obligated to pay income tax. In the case of partially deductible expenditures for income tax purposes, only the amount equivalent to the value added tax that has been transferred to the taxpayer and the value added tax paid on the importation, in the proportion in which such expenditures are deductible for income tax purposes, will be considered for the purposes of the crediting referred to in this Law.
Amended paragraph DOF 11-12-2013
Reform DOF 30-11-2016: Repealed the then second paragraph of the section.
-
That the value added tax has been expressly transferred to the taxpayer and that it appears separately in the tax receipts referred to in Section III of Article 32 of this Law. In the case of the importation of merchandise, the customs declaration must be in the name of the taxpayer and include the payment of the corresponding value added tax;
Amended paragraph DOF 12-11-2021
In addition to the provisions of the preceding paragraph, in the case of specialized services or the execution of specialized works referred to in Article 15-D, third paragraph of the Federal Fiscal Code, when the payment of the consideration for the service received is made, the contracting party must verify that the contractor has the registration referred to in Article 15 of the Federal Labor Law, the contractor must verify that the contractor has the registration referred to in Article 15 of the Federal Labor Law, and must also obtain from the contractor a copy of the value added tax return and the acknowledgement of receipt of the payment corresponding to the period in which the contractor made the payment of the consideration and the value added tax that was transferred to the contractor. In turn, the contractor will be obliged to provide the principal with a copy of the aforementioned documentation, which must be delivered no later than the last day of the month following the month in which the principal has made the payment of the consideration for the service received and the value added tax that has been transferred. In the event that the contractor does not collect the documentation referred to in this section within the aforementioned term, he must file a supplementary return in which he reduces the amounts credited for such concept.
Paragraph added DOF 23-04-2021
Reformed fraction DOF 11-12-2013, 30-11-2016, 09-12-2019
- That the value added tax transferred to the taxpayer has been effectively paid in the month in question;
-
That in the case of the value added tax transferred that has been withheld pursuant to Articles 1-A and 18-J, Section II, subsection a) of this Law, such withholding is paid in accordance with the terms and deadlines established therein. The tax withheld and paid may be credited in the monthly tax return following the return in which the withholding was paid;
Reformed fraction DOF 11-12-2013, 09-12-2019
-
When the taxpayer is obligated to pay value added tax or when the 0% rate is applicable, only for a part of the activities carried out by the taxpayer, the following shall apply:
- When the value added tax transferred or paid on importation corresponds to expenditures for the acquisition of goods other than the investments referred to in paragraph d) of this section, for the acquisition of services or for the temporary use or enjoyment of goods, which are used exclusively to carry out the activities for which the value added tax must be paid or for which the 0% rate is applicable, such tax shall be creditable in its entirety;
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When the value added tax transferred or paid on importation corresponds to expenditures for the acquisition of goods other than the investments referred to in subsection d) of this section, for the acquisition of services or for the temporary use or enjoyment of goods, which are used exclusively to carry out the activities for which value added tax is not payable, including those referred to in Article 4o.-A of this Law, such tax shall not be creditable;
Subsection amended DOF 12-11-2021
-
When the taxpayer uses indistinctly goods other than the investments referred to in paragraph d) of this section, services or the temporary use or enjoyment of goods, to carry out activities for which the value added tax must be paid, to carry out activities to which according to this Law the 0% rate is applicable, to carry out activities for which the tax established in this Law must not be paid, including those referred to in Article 4o.A of the same, the crediting will proceed only in the proportion in which the value of the activities for which the value added tax must be paid or to which the 0% rate is applicable, represents in the total value of the mentioned activities that the taxpayer carries out in the month in question, including the acts or activities referred to in Article 4o.-A of this Law, and
Subsection amended DOF 12-11-2021
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In the case of the investments referred to in the Income Tax Law, the value added tax that has been transferred to the taxpayer in its acquisition or that paid in its importation will be creditable considering the usual destination that such investments have to carry out the activities for which the tax established in this Law must or must not be paid, including those referred to in Article 4o.-A of the same, or to which the 0% rate is applied, having to make the appropriate adjustment when the aforementioned destination is altered. For such purposes, the following procedure shall be followed:
Amended paragraph DOF 12-11-2021
- In the case of investments that are used exclusively to carry out activities for which the taxpayer is obligated to pay value added tax or to which the 0% rate is applicable, the value added tax that has been transferred to the taxpayer or that paid on importation, will be creditable in its entirety in the month in question.
-
In the case of investments that are used exclusively to carry out activities for which the taxpayer is not obligated to pay the tax established by this Law, including those referred to in Article 4o.-A of the same, the value added tax that has been effectively transferred to the taxpayer or paid on importation will not be creditable.
Amended paragraph DOF 12-11-2021
-
When the taxpayer uses the investments indistinctly to carry out both activities for which the value added tax must be paid or for which the 0% rate is applicable, as well as for activities for which it is not obligated to pay the tax established by this Law, including those referred to in Article 4o.A of the same, the value added tax transferred to the taxpayer or the one paid in the importation, will be creditable in the proportion in which the value of the activities for which the value added tax must be paid or the 0% rate is applicable, represents in the total value of the mentioned activities, including the acts or activities referred to in Article 4o.-A of this Law, that the taxpayer carries out in the month in question, having to apply, if applicable, the adjustment referred to in Article 5o.-A of this Law.
Amended paragraph DOF 12-11-2021
Taxpayers who make the crediting under the terms set forth in the preceding paragraph must apply it to all the investments they acquire or import in a period of at least sixty months as of the month in which the crediting was made.
The procedure established in the first paragraph of this section shall not be applicable to investments whose crediting has been carried out in accordance with the provisions of article 5o.-B of this Law.
- When the investments referred to in paragraphs 1 and 2 of this subsection cease to be used exclusively for the activities provided for in said paragraphs, in the month in which this occurs, the adjustment provided for in Article 5o.-A of this Law shall be applied.
-
In the case of expenses and investments in pre-operating periods, the value added tax transferred and the tax paid on importation corresponding to the activities for which the tax established in this Law is to be paid or to which the 0% rate is to be applied, will be creditable in the proportion and under the terms established in this Law, in accordance with the options mentioned below:
- Carry out the crediting in the tax return corresponding to the first month in which the taxpayer performs the aforementioned activities, in the proportion and under the terms established in this Law. For these purposes, the taxpayer may update the amounts of the tax to be credited in each of the months during the pre-operating period, for the period from the month in which the tax was transferred or the tax was paid on the import until the month in which the taxpayer files the return referred to in this subsection.
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Request the corresponding tax refund in the month following the month in which the expenses and investments are made, in accordance with the estimate made of the proportion in which such expenses and investments will be used to carry out activities for which the tax established in this Law is to be paid or to which the 0% rate is to be applied, with respect to the total activities to be carried out. In the event that this option is exercised, the following must be submitted to the tax authority together with the first refund request:
- The estimate and description of the expenses and investments to be made in the pre-operating period, as well as a description of the activities to be carried out by the taxpayer. For these purposes, among other documents, the property titles, contracts, agreements, authorizations, licenses, permits, notices, registrations, plans and bids that, if applicable, are necessary to prove that the activities will be carried out must be submitted.
- The estimate of the proportion that the value of the activities for which the tax established in this Law will be payable or to which the 0% rate will be applied will represent, with respect to the total activities to be carried out.
- The financing mechanisms to carry out the expenses and investments.
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The estimated date for carrying out the activities that are the object of this Law, as well as, if applicable, the prospectus or investment project whose execution will give rise to the performance of the activities for which the tax established in this Law is to be paid or to which the 0% rate is to be applied.
The information referred to in this paragraph must be presented in accordance with the general rules issued by the Tax Administration Service.
When any of the options referred to in paragraphs a) or b) of this section are exercised, the taxpayer must calculate in the twelfth month, counted as of the month immediately following the month in which the taxpayer began activities, the proportion in which the value of the activities for which the value added tax was paid or to which the 0% rate was applied, represents in the total value of the aforementioned activities that the taxpayer has carried out in the twelve months prior to said month and compare it against the proportion applied to credit the tax that was transferred or paid on the importation of goods or services, represents in the total value of the aforementioned activities that the taxpayer has carried out in the twelve months prior to said month and compare it against the proportion applied to credit the tax that was transferred or that paid on the importation of the expenses and investments made in the pre-operating period, in accordance with paragraphs a) or b) of this section, as the case may be. In order to identify the month in which the adjustment referred to in this paragraph must be made, taxpayers must inform the authority of the month in which they begin their activities, in accordance with the general rules issued for such purpose by the Tax Administration Service.
Amended paragraph DOF 12-11-2021
When from the comparison referred to in the preceding paragraph, the proportion applied to credit the tax corresponding to the expenses or investments made in the pre-operating period is modified by more than 3%, such crediting must be adjusted in the following manner:
-
When the proportion of the value of the activities for which the value added tax must be paid is reduced or the 0% rate is applied, with respect to the value of the total activities, the taxpayer must refund the crediting made in excess, restated from the month in which the crediting was made or the refund was obtained and up to the month in which the refund is made. In this case, the amount of the excess crediting will be the amount resulting from decreasing the amount of the tax effectively credited in the month in question, the amount resulting from applying the proportion corresponding to the twelve-month period to the amount of the tax that has been transferred to the taxpayer or the amount paid on the importation of the expenses and investments in the month in question.
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When the proportion of the value of the activities for which the value added tax must be paid increases or the 0% rate is applied, with respect to the value of the total activities, the taxpayer may increase the crediting made, restated from the month in which the crediting was made or the refund was obtained and up to the twelfth month, counted from the month in which the activities began. In this case, the amount of the credit to be increased will be the amount resulting from decreasing the amount resulting from applying the proportion corresponding to the twelve-month period to the amount of the tax that has been transferred to the taxpayer or that paid on the importation of the expenses and investments in the month in question, the amount of the tax effectively credited in such month.
Article 5o.-A. When the taxpayer has made the crediting under the terms of article 5o., section V, paragraph d), numeral 3 of this Law, and in the months following the month in which the crediting in question was made, the proportion mentioned in said provision is modified by more than 3%, the crediting must be adjusted in the following manner:
-
When the proportion of the value of the activities for which the value added tax is payable decreases or the 0% rate is applied with respect to the value of the total activities, the taxpayer must refund the corresponding credit, updated from the month in which it was credited and up to the month in question, in accordance with the following procedure:
- To the value added tax that has been transferred to the taxpayer or paid in the importation, corresponding to the investment, the maximum deduction percentage per fiscal year that for the good in question is established in Title II of the Income Tax Law will be applied.
- The amount obtained in accordance with the preceding paragraph shall be divided by twelve.
- To the amount determined in accordance with the preceding paragraph, the proportion that the value of the activities for which the value added tax must be paid or the 0% rate is applied, represented in the total value of the activities that the taxpayer carried out in the month in which the crediting took place, will be applied.
- To the amount determined in accordance with paragraph b) of this section, the proportion that the value of the activities for which the value added tax must be paid or the 0% rate is applied, represents in the total value of the activities carried out by the taxpayer in the month for which the adjustment is made, shall be applied.
- The amount obtained in accordance with paragraph c) of this section shall be reduced by the amount obtained in accordance with paragraph d) of this section. The result will be the amount to be refunded, restated from the month in which it was credited and up to the month in question, and
-
When the proportion of the value of the activities for which the value added tax must be paid increases or the 0% rate is applied, with respect to the value of the total activities, the taxpayer may increase the crediting, updated from the month in which it was credited and up to the month in question, in accordance with the following procedure:
- To the value added tax that has been transferred to the taxpayer or paid in the importation, corresponding to the investment, the maximum deduction percentage per fiscal year that for the good in question is established in Title II of the Income Tax Law will be applied.
- The amount obtained in accordance with the preceding paragraph shall be divided by twelve.
- To the amount determined in accordance with the preceding paragraph, the proportion that the value of the activities for which the value added tax must be paid or the 0% rate is applied, represented in the total value of the activities that the taxpayer carried out in the month in which the crediting took place, will be applied.
- To the amount determined in accordance with paragraph b) of this section, the proportion that the value of the activities for which the value added tax must be paid or the 0% rate is applied, represents in the total value of the activities carried out by the taxpayer in the month for which the adjustment is made, shall be applied.
- The amount obtained in accordance with paragraph d) of this section shall be reduced by the amount obtained in accordance with paragraph c) of this section. The result will be the amount that may be credited, restated from the month in which the corresponding credit was made and up to the month in question.
Article 5.-B . Taxpayers, instead of applying the provisions of article 5, section V, paragraphs c) and d), numeral 3 and article 5o.A of this Law, may credit the value added tax that has been transferred to them when making expenditures for the acquisition of goods, acquisition of services or for the temporary use or enjoyment of goods or that paid on their importation, in the amount resulting from applying to the mentioned tax the proportion that the value of the activities for which the tax must be paid or to which the 0% rate is applied, corresponding to the calendar year immediately prior to the month for which the creditable tax is calculated, represents in the total value of the activities, carried out by the taxpayer in said calendar year.
During the calendar year in which the taxpayers begin the activities for which they must pay the tax established by this Law and in the following year, the proportion applicable in each of the months of such years will be calculated considering the values mentioned in the preceding paragraph, corresponding to the period from the month in which the activities began and up to the month for which the creditable tax is calculated. In the case of investments, the creditable tax will be calculated taking into account the proportion of the mentioned period and an adjustment must be made in the twelfth month, counted as of the month immediately following the month in which the taxpayer began activities, in accordance with the general rules issued by the Tax Administration Service for such purpose. For this purpose, the proportion corresponding to the period of the first twelve months of activities of the taxpayer must be considered, which will be compared with the proportion initially applied to the tax transferred or paid on the importation of the investment made. In the event of a modification of more than 3%, such crediting must be adjusted as follows:
- When the proportion of the value of the activities for which the value added tax must be paid is reduced or the 0% rate is applied, with respect to the value of the total activities, the taxpayer must refund the crediting made in excess, restated from the month in which the crediting was made until the month in which the refund is made. In this case, the amount of the excess crediting will be the amount resulting from decreasing the amount of the tax effectively credited in the month in question, the amount resulting from applying the proportion corresponding to the twelve-month period to the amount of the tax that has been transferred to the taxpayer or that paid on the importation of the investments made in the month in question.
-
II. When the proportion of the value of the activities for which the value added tax must be paid increases or the 0% rate is applied, with respect to the value of the total activities, the taxpayer may increase the crediting made, restated from the month in which the crediting was made and up to the twelfth month, counted from the month in which the activities began. In this case, the amount of the credit to be increased will be the amount resulting from decreasing the amount resulting from applying the proportion corresponding to the twelve-month period to the amount of the tax that has been transferred to the taxpayer or that paid on the importation of the investments in the month in question, the amount of the tax effectively credited in such month.
Amended paragraph DOF 30-11-2016
The restatement referred to in sections I and II of the preceding paragraph shall be calculated by applying the restatement factor obtained in accordance with Article 17-A of the Federal Fiscal Code.
Paragraph added DOF 30-11-2016
The refund or increase of the crediting, which corresponds in accordance with sections I and II of the second paragraph of this article, as the case may be, must be made in the month in which the adjustment of the crediting referred to in said paragraph must be made, in accordance with the general rules issued for such purpose by the Tax Administration Service.
Paragraph added DOF 30-11-2016
Taxpayers who exercise the option provided for in this article must apply it with respect to all expenditures for the acquisition of goods, acquisition of services or for the temporary use or enjoyment of goods, which are used indistinctly to carry out the activities for which value added tax is or is not payable or to which the 0% rate is applied, within a period of sixty months, counted as of the month in which the crediting has been made under the terms of this article.
The procedure established in this article will not be applicable to investments whose crediting has been carried out in accordance with the provisions of article 5, section V, paragraph d), numeral 3 of this Law.
Article added DOF 07-06-2005
Article 5.-C . In order to calculate the proportion referred to in articles 5o., section V, paragraphs c) and d), numeral 3; 5.-A, section I, paragraphs c) and d), section II, paragraphs c) and d), and 5o.-B of this Law, the following concepts should not be included in the values referred to in said precepts:
- Imports of goods or services, including when they are temporary under the terms of the Customs Law;
-
Disposals of its fixed assets and deferred expenses and charges referred to in Article 32 of the Income Tax Law, as well as the disposal of land, unless it is part of the taxpayer's current assets, even if it is done through real estate participation certificates;
Reformed fraction DOF 11-12-2013
- Dividends received in currency, shares, partnership interests or debt securities, provided that in the latter case their sale does not imply the transfer of ownership of a tangible asset or the right to acquire it, except in the case of legal entities that receive income mainly from this concept;
- Disposals of shares or partnership interests, documents pending collection and debt securities, provided that their disposal does not imply the transfer of ownership of tangible property or the right to acquire it;
- The alienation of national and foreign currency, as well as gold or silver pieces that have had such character and pieces denominated "troy ounce";
- The interest received and the exchange gain;
- Those derived from derivative financial transactions referred to in Article 16-A of the Federal Fiscal Code.
-
The sale of non-amortizable real estate participation certificates referred to in the second paragraph of Section VII
of Article 9 of this Law.
Section added DOF 12-23-2005
Disposals made through financial leasing. In these cases the value to be excluded will be the value of the asset that is the object of the operation expressly stated in the respective contract;
Disposals of property acquired by dation in payment or judicial or fiduciary adjudication, provided that such disposals are carried out by taxpayers who by law cannot keep the property, and
Credit, insurance and bonding institutions, general deposit warehouses, retirement fund administrators, financial leasing companies, savings and loan companies, credit unions, financial factoring companies, brokerage firms, exchange houses, limited purpose financial companies, multiple purpose financial companies that for income tax purposes are part of the financial system and securities deposit companies, must not exclude the items indicated in sections IV, V, VI and IX above.
Amended paragraph DOF 11-12-2013
Article added DOF 07-06-2005
Article 5.-D . The tax shall be calculated for each calendar month, except for the cases indicated in Articles 5o.-F and 33 of this Law.
Amended paragraph DOF 11-12-2013, 12-11-2021
Taxpayers shall pay the tax by means of a tax return to be filed with the authorized offices no later than the 17th day of the month following the month to which the payment corresponds.
The monthly payment will be the difference between the tax corresponding to the total of the activities carried out in the month for which the payment is made, with the exception of imports of tangible goods, and the amounts for which the crediting is applicable, determined under the terms of this Law. If applicable, the taxpayer will deduct from the tax corresponding to the total of its activities, the tax withheld in such month.
In the case of importation of tangible goods, payment will be made as established in Article 28 of this law. For the purposes of this Law, tangible goods are those that can be touched, weighed or measured; and intangible goods are those that do not have at least one of these characteristics.
Article added DOF 07-06-2005
Article 5o.-E . (Repealed).
Article added DOF 11-12-2013. Repealed DOF 12-11-2021
Article 5.-F . Individual taxpayers who only obtain income from the granting of the temporary use or enjoyment of real estate, the monthly amount of which does not exceed ten general minimum wages of the geographic area of the Federal District, raised per month, who exercise the option referred to in Article 116 of the Income Tax Law to make provisional payments on a quarterly basis for purposes of such tax, instead of filing the monthly return referred to in Article 5o.D of this Law, they must calculate the value added tax on a quarterly basis for the periods of January, February and March; April, May and June; July, August and September, and October, November and December of each year, and make the payment of the tax through a declaration to be filed before the authorized offices no later than the 17th day of the month following the quarter to which the payment corresponds. Quarterly payments will be considered definitive.
The quarterly payment will be the difference between the tax corresponding to the total of the activities carried out in the quarter for which the payment is made and the amounts corresponding to the same period for which the crediting is applicable, determined under the terms of this Law. If applicable, the taxpayer will deduct from the tax corresponding to the total of its activities, the tax withheld in the quarter in question.
In the case of taxpayers initiating activities, in the tax return corresponding to the first quarter they file, they should only consider the months in which they have carried out activities.
Article added DOF 11-12-2013
Article 6 - When in the payment declaration there is a balance in favor, the taxpayer may only credit it against the tax payable in the following months until it is exhausted or request a refund. When the refund is requested, it must be on the total of the balance in favor.
Amended paragraph DOF 31-12-1986, 31-12-1988, 28-12-1989, 26-12-1990, 31-12-1999, 30-12-2002, 01-12-2004, 09-12-2019
Balances for which a refund is requested may not be credited in subsequent returns.
Amended paragraph DOF 01-12-2004, 09-12-2019
In the case of taxpayers that provide the services referred to in paragraph h) of section II of Article 2o.-A of this Law, when in their monthly tax return there is a balance in favor, such balance will be paid to the taxpayer, who must use it to invest in hydraulic infrastructure or to pay the duties established in Articles 222 and 276 of the Federal Law of Duties. The taxpayer, by means of a notice, will demonstrate before the Tax Administration Service the investment made or, as the case may be, the payment of the duties made.
Paragraph added DOF 12/30/2002
Reform DOF 12-30-2002: Repealed the then second paragraph of the article.
Article reformed DOF 31-12-1979, 30-12-1980
Article 7.- The taxpayer who receives the return of goods sold, grants discounts or bonuses or returns advances or deposits received, in connection with the performance of activities taxed by this Law, shall deduct in the next or following payment declarations of the corresponding calendar month, the amount of such concepts from the value of the acts or activities for which the tax must be paid, provided that it is expressly stated that the value added tax that had been transferred was returned.
Amended paragraph DOF 12/30/2002
The refund of the corresponding tax must be recorded in a document that expressly and separately contains the consideration and the value added tax transferred that would have been refunded, as well as the identification data of the tax voucher of the original transaction.
Paragraph added DOF 11-12-2013
The taxpayer that returns the goods that have been sold to it, receives discounts or bonuses, as well as the advances or deposits that it has delivered, will deduct the tax refunded from the amount of the creditable tax in the month in which any of the aforementioned events occurs; when the amount of the creditable tax is less than the amount of the tax to be refunded, the taxpayer will pay the difference between such amounts when filing the payment return corresponding to the month in which it receives the discount or rebate, makes the return of goods or receives the advance payments or deposits it may have delivered.
Amended paragraph DOF 12-31-1999, 12-30-2002, 12-01-2004
The provisions of this article will not be applicable when for the acts that are the object of the refund, discount or rebate, the withholding and payment has been made under the terms of articles 1-A, 3, third paragraph or 18-J, section II, paragraph a) of this Law. In this case, taxpayers must file a complementary tax return to cancel the effects of the respective operation, without the complementary tax returns filed exclusively for this concept being computed within the limit established in Article 32 of the Federal Tax Code.
Paragraph added DOF 12/31/1998. Amended DOF 11-12-2013, 09-12-2019.
Article amended DOF 31-12-1979, 30-12-1980, 26-12-1990
CHAPTER II
Disposal
Article 8 .- For the purposes of this Law, alienation is understood to mean, in addition to what is indicated in the Federal Tax Code, the lack of goods in the inventories of the companies. In the latter case, the presumption admits proof to the contrary.
The transfer of property through death, as well as the donation, will not be considered as a transfer, unless the donation is made by companies for which the donation is not deductible for income tax purposes.
Amended paragraph DOF 26-12-1990, 21-11-1991
When the transfer of ownership does not take place, the corresponding value added tax will be refunded, provided that the requirements established in the first and second paragraphs of Article 7 of this Law are met. When the tax has been withheld under the terms of Articles 1-A, 3, third paragraph and 18-J, section II, paragraph a) of this Law, there will be no right to a refund of the tax and the provisions of the fourth paragraph of the aforementioned Article 7 of this Law will apply.
Amended paragraph DOF 31-12-1998, 09-12-2019
Article amended DOF 31-12-1981
- Soil.
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Constructions attached to the ground, destined or used for residential purposes. When only part of the constructions are used or intended for residential purposes, the tax shall not be paid for such part. Hotels are not included in this section.
- Books, newspapers and magazines, as well as the right to use or exploit a work, made by its author.
- Used personal property, with the exception of those sold by companies.
-
Tickets and other vouchers that allow participation in lotteries, raffles, drawings or games with bets and contests of all kinds, as well as the respective prizes referred to in the Income Tax Law.
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National and foreign currency, as well as gold or silver pieces that would have had such character and the pieces denominated troy ounce.
-
Corporate shares, documents pending collection and debt instruments, with the exception of certificates of deposit of goods when the sale of such goods is subject to payment of this tax and of non-amortizable real estate participation certificates or other securities that grant their holder rights over real estate other than a house or land. In the sale of documents pending collection, the sale of the property covered by the document is not included.
The tax is also not payable on the sale of non-amortizable real estate certificates of participation, when they are registered in the National Registry of Securities and Intermediaries and their sale is carried out in a stock exchange under the terms of the Securities Market Law or in recognized markets in accordance with international treaties that Mexico has in force.
Paragraph added DOF 12-23-2005
Reformed fraction DOF 31-12-1998
-
Gold ingots with a minimum content of 99% of such material, provided they are sold at retail sales to the general public.
Section amended DOF 12/31/1982, 11/21/1991, 12/28/1994
-
The transfer of goods between residents abroad, provided that the goods have been exported or introduced into Mexican territory under a program authorized pursuant to the Decree for the promotion of the manufacturing, maquiladora and export services industry, published in the Official Gazette of the Federation on November 1, 2006, or a similar regime under the terms of the customs legislation, or in the case of companies in the automotive terminal industry or the manufacture of motor vehicles, published in the Official Gazette of the Federation on November 1, 2006, or a similar regime under the terms of the customs legislation, or in the case of companies of the automotive terminal or manufacturing industry of motor vehicles or auto parts for their introduction to a tax warehouse, and the goods are kept in the temporary import regime, in a similar regime in accordance with the Customs Law, or in a tax warehouse.
Section added DOF 12/30/2002. Amended DOF 11-12-2013
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That of goods made by legal entities authorized to receive deductible donations for income tax purposes.
Fraction added DOF 09-12-2019
Reform DOF 11-12-2013: Repealed the last paragraph of the article (previously added by DOF 30-12-2002).
Article amended DOF 30-12-1980
Article 10 - For the purposes of this Law, it is understood that the alienation is carried out in Mexican territory, if the property is found there when it is shipped to the purchaser and when, not having been shipped, the material delivery of the property by the alienating party is carried out in the country. The alienation of goods subject to Mexican registration or records will be considered to be carried out in Mexican territory even when the goods are physically located outside such territory and provided that the alienating party is a resident in Mexico or an establishment in the country of residents abroad.
Amended paragraph DOF 12/26/1990
In the case of intangible assets, the transfer is considered to take place in Mexican territory when the acquirer and the transferor reside in Mexican territory.
Article 11 - The disposal of the goods is deemed to have taken place at the time when the consideration is actually collected and on the amount of each one of them.
In the case of the sale of securities that incorporate real rights to the delivery and disposition of property, it will be considered that the property covered by such securities is sold at the time the price for the transfer of the security is paid; if there is no transfer, when the property covered by such securities is materially delivered to a person other than the person who constituted such securities. In the case of real estate participation certificates, it is considered that the sale of the property covered by the certificate takes place when the certificate is transferred.
In the case of shortage of goods in the inventories of the companies, it is considered that the disposal is made at the moment in which the taxpayer or the tax authorities become aware of such shortage, whichever occurs first; in the case of donations for which the tax must be paid, at the moment in which the donated good is delivered or the receipt transferring the property is issued, whichever occurs first.
Paragraph added DOF 11-12-2013
Article amended DOF 30-12-2002
Article 12 - In order to calculate the tax in the case of alienations, the value shall be considered to be the price or consideration agreed upon, as well as the amounts charged or collected from the purchaser for other taxes, duties, normal or default interest, conventional penalties or any other concept.
Article amended DOF 31-12-1979, 30-12-2002
Article 13 .- (Repealed).
Article amended DOF 12/31/1979. Repealed 30-12-1980. Added 13-12-1996. Repealed DOF 31-12-1998.
CHAPTER III
Service provision
Article 14 - For the purposes of this Law, independent services are considered to be rendered:
- The rendering of obligations to perform by one person in favor of another, regardless of the act that gives rise to it and the name or classification given to such act by other laws.
- The transportation of persons or goods.
- Insurance, bonding and reinsurance. Reformed fraction DOF 12/28/1994
- Mandate, commission, mediation, agency, representation, brokerage, consignment and distribution.
- Technical assistance and technology transfer.
- Any other obligation to give, not to do or to allow, assumed by a person for the benefit of another, provided that it is not considered by this Law as alienation or temporary use or enjoyment of property.
The rendering of independent services is not considered to be that which is performed in a subordinate manner through the payment of remuneration, nor services for which income is received that the Income Tax Law assimilates to such remuneration.
It shall be understood that the rendering of independent services has the characteristic of personnel, in the case of the activities indicated in this article that do not have the nature of a business activity.
Paragraph added DOF 12-30-1983
-
Commissions and other considerations paid by the borrower to its creditor in connection with the granting of mortgage loans for the acquisition, expansion, construction or repair of real property for residential use, except for those originated after the authorization of said loan or which must be paid to third parties by the borrower.
Section repealed DOF 12/31/1982. Added DOF 12/28/1994
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Commissions charged by retirement fund managers or, as the case may be, by credit institutions, to workers for the administration of their resources from retirement savings systems and for services related to such administration, as referred to in the Law of the Retirement Savings Systems and the Law of the Institute of Security and Social Services for State Workers, as well as other provisions derived therefrom.
Section repealed DOF 12/31/1982. Added DOF 15-05-1997
-
Those rendered free of charge, except when the beneficiaries are members, partners or associates of the legal
entity rendering the service.
Reformed fraction DOF 30-12-1980
-
The educational services provided by the Federation, the Federal District, the States, the Municipalities and their decentralized agencies, and private establishments that have authorization or recognition of official validity of studies, under the terms of the General Education Law, as well as preschool educational services.
Section amended DOF 12/28/1994
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Public land transportation of persons that is provided exclusively in urban, suburban or metropolitan areas. Public transportation is not considered to be that which is contracted through digital intermediation service platforms between third parties that are providers of transportation services and the demanders thereof, when the vehicles with which the service is provided are for private use.
Reformed fraction DOF 30-12-1980, 26-12-1990, 11-12-2013, 09-12-2019
-
International maritime transportation of goods provided by persons residing abroad without a permanent establishment in the country. In no case shall the provisions of this section be applicable in the case of cabotage services in national territory.
Reformed fraction DOF 30-12-1980, 28-12-1994
-
Those provided by legal entities authorized to receive deductible donations for income tax purposes.
Section repealed DOF 30-12-1980. Added DOF 09-12-2019
(Repealed).
-
Insurance against agricultural risks, housing credit insurance covering the risk of default by debtors of mortgage loans or loans with fiduciary guarantee for the acquisition, expansion, construction or repair of real estate for housing, financial guarantee insurance covering payment for default by issuers of securities, debt instruments or documents that are the object of public offering or intermediation in securities markets, provided that the proceeds from the placement of such securities, debt instruments or documents are used for the financing of mortgage loans or loans with fiduciary guarantee for the acquisition, expansion, construction or repair of real estate for housing, and life insurance, whether covering the risk of death or granting annuities or pensions, as well as the agent's commissions corresponding to the aforementioned insurance.
Reformed fraction DOF 28-12-1994, 22-06-2006
-
For those deriving interests that:
Amended paragraph DOF 11-21-1991
-
Derive from transactions in which the transferor, the service provider or whoever grants the temporary use or enjoyment of goods, provides financing related to acts or activities for which the taxpayer is not required to pay this tax or to which the 0% rate applies.
-
Received or paid by credit institutions, credit unions, limited purpose financial companies, savings and loan companies and financial factoring companies, in financing transactions for which they require authorization and for discounting documents pending collection; those received and paid by multiple purpose financial companies that for income tax purposes are part of the financial system, for the granting of credit, financial factoring or discounting of documents pending collection; those received by bonded warehouses for loans granted that have been secured with pledge bonds; those received or paid by multiple purpose financial companies that for income tax purposes are part of the financial system, for the granting of credit, financial factoring or discounting of documents pending collection; those received by bonded warehouses for loans granted that have been secured with pledge bonds; those received or paid by savings and loan cooperative societies referred to in the Law to Regulate the Activities of Savings and Loan Cooperative Societies, as well as popular financial societies, community financial societies and rural financial integration organizations, referred to in the Law of Popular Savings and Credit, to their members or clients, as the case may be, and that comply with the requirements to operate as such in accordance with the aforementioned ordinances; those received or paid in financing operations by decentralized agencies of the Federal Public Administration and economic development trusts of the Federal Government, which are subject to the supervision of the National Banking and Securities Commission; as well as the commissions of agents and correspondents of credit institutions for such operations.
Amended paragraph DOF 12/28/1994, 12/29/1997, 07/18/2006, 12/11/2013
The provisions of the preceding paragraph will not be applicable in the case of loans granted to individuals who do not engage in business activities, or do not provide independent personal services, or do not grant the temporary use or enjoyment of real estate. In the case of loans granted to individuals who carry out the aforementioned activities, the tax will not be payable when such loans are for the acquisition of investment goods in such activities or in the case of mortgage loans or loans for refurbishment, habilitation or avío, provided that such individuals are registered in the Federal Taxpayers' Registry.
Paragraph added DOF 11-21-1991. Amended 28-12-1994, 07-12-2009, 11-12-2013.
The exemption provided in the first paragraph of this subsection shall not be applicable in the case of credits granted through credit cards.
Paragraph added DOF 11-21-1991
Reformed clause DOF 26-12-1990
-
Received by bonding institutions, insurance companies and mutual insurance companies, in financing transactions, except in the case of loans granted to individuals who would not enjoy the exemption provided for in the preceding paragraph.
Subsection amended DOF 11-21-1991
-
They come from mortgage loans or with fiduciary guarantee for the acquisition, expansion, construction or repair of real estate property intended for residential use.
Subsection amended DOF 21-11-1991, 28-12-1994, 29-12-1997
- They come from workers' savings banks and from savings funds established by companies, provided that they meet the deductibility requirements under the Income Tax Law.
- Derived from obligations issued in accordance with the provisions of the General Law of Credit Instruments and Operations.
-
Receive or pay public institutions that issue bonds and manage savings plans with the unconditional guarantee of payment from the Federal Government, in accordance with the Law.
Subsection added DOF 12/31/1987
-
Derived from securities held by the Federal Government and registered in the National Registry of Securities and Intermediaries.
Subsection added DOF 12/31/1988. Amended DOF 28-12-1989, 30-12-2002.
-
Derived from debt securities that are considered to be placed among the general investing public, in accordance with the general rules issued for such purpose by the Ministry of Finance and Public Credit, or from loan transactions of securities and other fungible goods referred to in section III of article 14-A of the Federal Fiscal Code.
Section added DOF 28-12-1989. Amended DOF 26-12-1990, 29-12-1993.
Reformed fraction DOF 30-12-1980
-
-
For those derived from derivative financial transactions referred to in Article 16-A of the Federal Fiscal Code.
Section amended DOF 30-12-1980. Repealed 26-12-1990. Added 29-12-1993.
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Those provided to its members as normal consideration for their dues and provided that the services rendered are only those related to their own purposes, in the case of:
- Legally recognized political parties, associations, coalitions and political fronts.
- Labor unions and organizations that group them together.
- Chambers of commerce and industry, agricultural, livestock, fishing or forestry groups, as well as organizations that bring them together. Subsection amended DOF 26-12-1990, 15-12-1995
- Employers' associations and professional associations.
- Associations or civil societies organized for scientific, political, religious and cultural purposes, with the exception of those that provide services with sports facilities when the value of these represent more than 25% of the total of the facilities. Section amended DOF 12/31/1982
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Those of public shows for the admission ticket, except those of theater and circus, when the agreement with the State or Agreement with the Department of the Federal District, where the show is presented does not comply with the provisions of Section VI of Article 41 of this Law. The exemption foreseen in this section shall not be applicable to movie shows, for the entrance ticket.
Amended paragraph DOF 12/31/98
Those provided in restaurants, bars, cabarets, party or dance halls and nightclubs are not considered public entertainment.
Reformed fraction DOF 11-21-1991
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Professional medical services, when their rendering requires a medical degree in accordance with the laws, provided that they are rendered by individuals, either individually or through civil societies or private assistance or charitable institutions authorized by the laws of the matter.
Reformed fraction DOF 31-12-1982, 08-12-2020
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Professional medical, hospital, radiology, laboratory and clinical study services rendered by decentralized agencies of the Federal Public Administration or of the Federal District, or of the state or municipal governments.
Section repealed DOF 12/31/1982. Added DOF 15-12-1995
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For which the authors obtain consideration in the following cases:
- For authorizing third parties to publish written works of his creation in newspapers and magazines, provided that the newspapers and magazines are intended for sale to the public by the person making the payments for these concepts.
- For temporarily transferring the economic rights or temporarily granting licenses of use to third parties, corresponding to works of their authorship referred to in sections I to VII, IX, X, XII, XIII and XIV of article 13 and article 78 of the Federal Copyright Law, which are registered in the Public Registry of Copyright of the Ministry of Public Education.
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The provisions of the preceding paragraphs shall not apply:
- When they are advertising ideas or phrases, logos, emblems, distinctive seals, industrial designs or models, operating manuals or works of applied art.
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When the consideration derives from the exploitation of written or musical works in business activities other than the sale to the public of their works or in the provision of services.
Reformed fraction DOF 28-12-1989, 26-12-1990, 03-12-1993, 30-12-2002
Section repealed DOF 12/30/1980
Article 16 - For the purposes of this Law, it is understood that the service is rendered in national territory when it is carried out, totally or partially, by a resident in the country.
In the case of international transportation, the service is considered to be rendered in national territory regardless of the residence of the carrier, when the trip begins there, even if it is a round trip.
In the case of international air transportation, it is considered that only 25% of the service is rendered within Mexican territory. Air transportation to Mexican cities located in the 20 kilometer border strip parallel to the international dividing lines of the north and south of the country, will enjoy the same treatment.
Amended paragraph DOF 12-30-1996
In the case of digital services referred to in Article 18-B of this Law, rendered by residents abroad without an establishment in Mexico, the service is considered to be rendered in Mexican territory when the recipient of the service is located in such territory, and the provisions of Chapter III BIS of this Law shall apply.
Paragraph added DOF 09-12-2019
In the case of interest and other considerations paid by residents in Mexico to residents abroad who grant credit through credit cards, it is understood that the service is rendered in Mexican territory when the card is used in such territory.
Paragraph added DOF 12-26-1990
Article 17 - In the rendering of services, the tax must be paid at the time the consideration is effectively collected and on the amount of each one of them, except in the case of the interest referred to in Article 18-A of this Law, in which case the tax must be paid as it accrues.
In the case of the rendering of services free of charge for which the tax must be paid, the tax shall be incurred at the time the service is provided.
Paragraph added DOF 11-12-2013. Amended DOF 09-12-2019
Article amended DOF 12-31-1979, 12-31-1981, 12-31-1998, 12-30-2002
Article 18 - To calculate the tax in the case of rendering of services, the total amount of the agreed consideration shall be considered as the value, as well as the amounts charged or collected from the person receiving the service for other taxes, duties, per diem, expenses of any kind, reimbursements, normal or moratorium interest, conventional penalties and any other concept.
In the case of legal entities that render services mainly to their members, partners or associates, the payments made by them, including capital contributions to absorb losses, will be considered as value for tax calculation purposes.
In the case of loans and other financing transactions, interest and any other consideration other than the principal received by the creditor shall be considered as value.
Article reformed DOF 31-12-1979, 30-12-1980
Article 18-A . For purposes of calculating the tax, the actual value of the interest accrued will be considered as value when it derives from credits granted by the institutions of the financial system referred to in Article 7 of the Income Tax Law; in credits granted through credit opening or current account agreements in which the borrower or account holder may use the credit through the use of cards issued by the creditor; and from financial leasing operations.
Amended paragraph DOF 29-12-1997, 30-12-2002, 11-12-2013
In the case of the transactions referred to in this article, the commissions charged to the debtor, borrower, account holder or lessee for the withdrawal of cash or for any other concept and the conventional penalties, except for default interest, shall not be considered as part of the accrued interest.
The actual value of accrued interest will be determined as follows:
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When the transaction in question is denominated in local or foreign currency, the real value of the interest shall be calculated by applying to the base on which the accrued interest was calculated, the real interest rate, in accordance with the following:
- The real interest rate will be calculated by subtracting inflation for the same period from the interest rate for the period in question. Inflation will be calculated by dividing the value of the investment unit determined by Banco de México for the last day of the period by the value of the investment unit for the day immediately prior to the first day of the period, and subtracting the unit from the quotient.
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When the credit transaction is agreed in foreign currency, the exchange gain accrued in the period in question, expressed as a proportion of the average principal balance in the same period, will be added to the interest rate corresponding to the same period. To express the exchange gain accrued in the period in question as a proportion of the average principal balance in the same period, the exchange gain in local currency will be divided by the average balance converted into local currency at the exchange rate published by Banco de México in the Official Gazette of the Federation for the last day of the interest accrual period. In the event that Banco de México does not publish such exchange rate, the last exchange rate published by such institution prior to such date will be applied. The average principal balance will be the sum of the daily principal balances in the period, divided by the number of days included in the same accrual period.
Amended paragraph DOF 29-12-1997
When in the interest accrual period, the result of adding the interest rate corresponding to the period and the exchange gain accrued in the same period expressed in the terms of the preceding paragraph, is equal to or less than the inflation rate of the period, the tax will not be incurred during such period.
In the event that the interest rate corresponding to the period is expressed in percent, it should be divided by one hundred before making the additions and subtractions mentioned in the preceding paragraphs.
- When the transactions in question are denominated in investment units, the real value of the interest will be the interest accrued in the period, without considering the adjustment corresponding to the principal due to the fact that they are denominated in such units.
In the case of the transactions referred to in this article, in which the interest accrual periods are monthly or less than one month, and in such periods the value of the investment unit for the last day of the interest accrual period is not fixed by Banco de México, taxpayers will consider the value of the investment unit determined by Banco de México for the days corresponding to the immediately preceding period and equal in duration to the interest accrual period.
When the payment of interest accrued monthly is not received during a period of three consecutive months, the taxpayer may, as of the fourth month, defer the tax on the interest accrued as of such month, until the month in which the payment of such interest is actually received. From the month in which the total payment of the uncollected accrued interest referred to in this paragraph is received, the tax corresponding to the interest that subsequently accrues will be incurred in the month in which it accrues. In the case of financial leasing, the provisions of this paragraph shall only be applicable in the case of transactions carried out with the general public.
Paragraph added DOF 29-12-1997
In the case of credit or leasing transactions agreed in foreign currency entered into with the general public, the value of accrued interest may be considered as the value for tax calculation purposes, instead of the actual value of accrued interest referred to in this article. When this option is exercised for an individual credit, it may not be changed during the term of such credit.
Paragraph added DOF 29-12-1997
Reform DOF 12-30-2002: Repealed the then fifth paragraph of the article (previously reformed by DOF 12-29-1997).
Article added DOF 15-12-1995
CHAPTER III BIS
Rendering of digital services by residents abroad without an establishment in Mexico
Chapter added DOF 09-12-2019
Section I
General Provisions
Section added DOF 09-12-2019
Article 18-B .- For the purposes of the provisions of the fourth paragraph of Article 16 of this Law, only the digital services mentioned below are considered, when they are provided through applications or content in digital format through the Internet or other network, mainly automated, and may or may not require minimal human intervention, provided that a fee is charged for the aforementioned services:
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Downloading or accessing images, movies, text, information, information, video, audio, music, games, including games of chance, as well as other multimedia content, multiplayer environments, obtaining mobile ringtones, viewing online news, traffic information, weather forecasts and statistics.
The provisions of this section shall not apply to the downloading or access to electronic books, newspapers and magazines.
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Intermediation between third parties that are suppliers of goods or services and the demanders thereof.
Reform DOF 08-12-2020: Repealed the then second paragraph of the section.
- Online clubs and dating sites.
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Distance learning or test or exercise teaching.
Article added DOF 09-12-2019
Article 18-C - The recipient of the service is considered to be in the national territory when any of the following events occur:
- That the recipient has declared to the service provider an address located in national territory.
- That the recipient of the service makes the payment to the service provider through an intermediary located in national territory.
- That the IP address used by the electronic devices of the recipient of the service corresponds to the range of addresses assigned to Mexico.
- That the recipient has provided the service provider with a telephone number whose country code corresponds to Mexico.
Article added DOF 09-12-2019
Article 18-D - Residents abroad without an establishment in Mexico that provide digital services to receivers located in Mexican territory, for the purposes of this Law, shall only comply with the following obligations:
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Register in the Federal Taxpayers Registry before the Tax Administration Service. Registration in the registry will be made within 30 calendar days from the date on which digital services are provided for the first time to a recipient located in Mexican territory. The Tax Administration Service will publish on its website and in the Official Gazette of the Federation the list of residents abroad that are registered in the registry.
- Offer and charge, together with the price of its digital services, the corresponding value added tax expressly and separately.
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Provide the Tax Administration Service with information on the number of services or operations performed in each calendar month with the recipients located in national territory that receive their services, classified by type of services or operations and their price, as well as the number of the aforementioned recipients, and maintain the base records of the information submitted. Said information must be submitted monthly, by means of an electronic declaration, no later than the 17th day of the month immediately following the month in which the information corresponds.
Reformed fraction DOF 12-11-2021
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Calculate in each calendar month the corresponding value added tax, applying the rate of 16% to the consideration actually collected in such month and make the payment by means of an electronic return to be filed no later than the 17th day of the following month.
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Issue and send electronically to the recipients of the digital services in national territory the receipts corresponding to the payment of the consideration with the tax transferred expressly and separately, when requested by the recipient of the services, which must meet the requirements that allow the identification of the service providers and the recipients of the services.
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Designate a legal representative before the Tax Administration Service when the registration referred to in Section I of this Article is carried out, and provide a domicile in national territory for the purposes of notification and surveillance of compliance with the tax obligations for the activities referred to in this Chapter.
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Process its advanced electronic signature, in accordance with the provisions of Article 19-A of the Federal Fiscal Code.
The obligations established in sections I, III, IV, V, VI and VII of this article must be complied with in accordance with the general rules issued for such purpose by the Tax Administration Service.
Residents abroad without an establishment in Mexico who provide the digital services provided for in Article 18-B, Sections I, III and IV, through the persons referred to in Section II of said Article, will not be required to comply with the obligations set forth in this Article, provided that the latter withhold value added tax in accordance with the terms of Article 18-J, Section II, paragraph a), second paragraph, of this Law.
Paragraph added DOF 08-12-2020
Article added DOF 09-12-2019
Article 18-E .- Compliance with the obligations referred to in Article 18-D of this Law will not result in the resident abroad being considered to constitute a permanent establishment in Mexico.
Article added DOF 09-12-2019
Article 18-F - The recipients of the services referred to in this Chapter may credit the tax transferred to them expressly and separately, provided that they comply with the requirements established for such purpose in this Law, with the exception of those applicable to digital tax receipts via the Internet. In substitution of these, the receipts must meet, at least, the requirements established in accordance with the provisions of Article 18-D, Section V of this Law.
Article added DOF 09-12-2019
Article 18-G - Failure to pay the tax, to pay withholdings, if any, and to file the payment and information returns referred to in Articles 18-D, Sections III and IV, and 18-J, Sections II, paragraph b) and III of this Law, shall be punished in accordance with the provisions of this Law and the Federal Fiscal Code.
Article added DOF 09-12-2019
Article 18-H - When the digital services referred to in Article 18-B of this Law are offered jointly with other digital services not contemplated in said article, the value added tax will be calculated by applying the rate of 16% only to the services contemplated in said article, provided that the respective voucher separates said services and that the consideration corresponding to each service corresponds to the prices that would have been charged had the services not been provided jointly. When the aforementioned separation is not made, it will be understood that the consideration charged corresponds to 70% of the amount of the services referred to in Article 18-B above.
Article added DOF 09-12-2019
Article 18-H BIS . Failure to comply with the obligations referred to in Sections I, VI and VII of Article 18-Dof this Law by residents abroad without an establishment in Mexico who provide the digital services provided for in Article 18-B of this law to receivers located in Mexican territory, will result in the temporary blocking of access to the digital service of the provider of the digital services that failed to comply with the aforementioned obligations, which will be carried out through the concessionaires of a public telecommunications network in Mexico, until such time as said resident complies with the omitted obligations.
The penalty referred to in the preceding paragraph shall also apply when the resident abroad fails to make the payment of the tax or the payment of the withholdings that, if applicable, must be made, as well as the filing of the payment and informative returns referred to in Articles 18-D, Sections III and IV and 18-J, Sections II, paragraph b) and III of this Law for three consecutive months.
Amended paragraph DOF 12-11-2021
Additionally, when the circumstances referred to in the preceding paragraph occur, the registration in the Federal Taxpayers Registry referred to in Article 18-D, Section I, of this Law will be cancelled and the taxpayer will be removed from the list referred to in said provision, both on the Tax Administration Service's website and in the Official Gazette of the Federation.
The penalties referred to in this article are independent of those corresponding to the omission in the payment of the tax, in the payment of withholdings and in the filing of payment and informative returns, in accordance with the provisions of article 18-G of this Law.
Article added DOF 08-12-2020
Article 18-H TER . For the purposes of the provisions of Article 18-H BIS of this Law, prior to the blocking mentioned in the aforementioned article, the Tax Administration Service will inform the taxpayer of the resolution in which it determines the noncompliance with the obligations in question.
In the case of noncompliance with the obligations referred to in Sections I, VI and VII of Article 18-D, the resolution will be published in the Official Gazette of the Federation and, in the case of those established in Articles 18-D, Sections III and IV, and 18-J, Sections II, paragraph b) and III of this Law, the resolution will be notified to the legal representative of the resident abroad without an establishment in Mexico, in order that the taxpayers may state before the tax authority what they deem appropriate and provide the documentation and information they consider pertinent to disprove the facts that gave rise to the aforementioned determination, within a period of fifteen days from the day following the day of publication or notification, as the case may be.
Taxpayers may request, through the means authorized for such purpose by the Tax Administration Service by means of general rules, on a single occasion, a five-day extension to the term provided in the preceding paragraph, to provide the respective documentation and information, provided that the request for extension is made within such term. The extension requested in these terms will be understood to be granted without the need for a pronouncement by the authority and will begin to be computed as from the day following the expiration of the term set forth in the preceding paragraph.
In the declaration referred to in the second paragraph of this article, the taxpayer must indicate an address to receive notifications within the national territory or an e-mail address for the same purpose.
Once the term referred to in the second paragraph of this article has elapsed and, if applicable, the term provided in the third paragraph of this article, the authority, within a term that shall not exceed fifteen days, will evaluate the documentation, information or statements that have been submitted and will notify the taxpayers of its resolution at the address or e-mail address that they have indicated when submitting their written clarification. Failing this, the notification will be made through publication in the Official Gazette of the Federation.
Within the first five days of the term referred to in the preceding paragraph, the authority may request additional documentation and information from the taxpayer, which must be provided within five days after the date on which the notification of the request becomes effective. In this case, the aforementioned fifteen-day period will be suspended as from the date the notification of the requirement becomes effective and will be resumed on the day following the day on which the aforementioned five-day period expires.
Once the term referred to in the preceding paragraph has elapsed without the taxpayer having evidenced compliance with the tax obligations set forth in Articles 18-D, Sections I, III, IV, VI and VII, and 18-J, Sections II, paragraph b) and III, of this Law, as applicable, the temporary blocking of access to the digital service will be ordered, which will be lifted once the omitted obligations have been complied with.
Article added DOF 08-12-2020
Article 18-H QUÁTER . For the purposes of the provisions of Articles 18-H BIS and 18-H TER of this Law, the temporary blocking must be ordered to the concessionaires of a public telecommunications network in Mexico, by means of a duly founded and reasoned resolution, issued by a public official with the position of general administrator in accordance with the provisions of the Internal Regulations of the Tax Administration Service. Independently of the foregoing, said decentralized body may request the assistance of any competent authority to carry out the temporary blocking referred to in this article.
The concessionaire of the public telecommunications network in Mexico in question shall have a period of five days from the day following the day on which the notification of the resolution ordering the temporary blocking of access to the digital service has taken effect, to carry out the corresponding temporary blocking.
The concessionaire of the public telecommunications network in Mexico in question must inform the tax authority no later than the fifth day following the day on which the temporary blocking was carried out.
Article added DOF 08-12-2020
Article 18-H QUINTUS . For the purposes of the provisions of Articles 18-H BIS, 18-H TER and 18-H QUÁTER, the Tax Administration Service will publish on its website and in the Official Gazette of the Federation the name of the supplier and the date from which the temporary blocking of access to the digital service must be carried out, so that the recipients of the services in national territory refrain from contracting future services.
When the taxpayer complies with the obligations that gave rise to the temporary blocking of access to the digital service, the Tax Administration Service, by means of a resolution, will issue the unblocking order to the concessionaire of a public telecommunications network in Mexico that corresponds, so that within a maximum term of five days it is complied with. Said order must be issued by the general administrator that has ordered the temporary blocking. Likewise, such decentralized body must reincorporate the taxpayer in the Federal Taxpayers Registry and include it in the list referred to in Article 18-D, Section I, of this Law.
Article added DOF 08-12-2020
Article 18-I .- When residents abroad without an establishment in Mexico are not included in the list referred to in Article 18-D, Section I of this Law, the recipients of the services located in Mexican territory shall consider such services as an import under the terms of Article 24, Sections II, III or V of this Law, as applicable, in which case they shall pay the tax under the terms provided in this Law.
Article added DOF 09-12-2019
Section II
Digital intermediation services between third parties
Section added DOF 09-12-2019
Article 18-J .- Residents abroad without an establishment in Mexico who provide the services referred to in Section II of Article 18-B of this Law, who operate as intermediaries in activities carried out by third parties, subject to the payment of the tax established in this Law, in addition to the obligations established in Section I of this Chapter, shall be obligated to the following:
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Publish on its website, application, platform or any other similar means, expressly and separately, the value added tax corresponding to the price at which the goods or services are offered by the sellers, service providers or grantors of the temporary use or enjoyment of goods, in which they operate as intermediaries.
The persons referred to in this article may choose to publish on their Internet page, application, platform or any other similar means, the price at which the goods or services are offered by the sellers, service providers or grantors of the temporary use or enjoyment of goods, in which they operate as intermediaries, without expressly and separately stating the value added tax, provided that such prices include the value added tax and they publish them with the legend "VAT included".
Paragraph added DOF 08-12-2020
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When they collect the price and the value added tax corresponding to the intermediation operations on behalf of the transferor of goods, service provider or grantor of the temporary use or enjoyment of goods, they shall:
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Pay the withholding by electronic return no later than the 17th day of the month following the month in which the withholding was made.
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Issue to each individual to whom the withholding was made a digital tax receipt via Internet of Withholdings and payment information, no later than five days following the month in which the withholding was made.
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Register in the Federal Taxpayers' Registry with the Tax Administration Service as withholding persons.
The obligations referred to in paragraphs b), c) and d) of this section must be complied with in accordance with the general rules issued for such purpose by the Tax Administration Service.
Withhold from individuals who sell goods, provide services or grant the temporary use or enjoyment of goods, 50% of the value added tax charged. In the case of the persons referred to in this subsection, who do not provide the persons mentioned in the first paragraph of this article with the code in the federal taxpayer registry, as provided in section III, subsection b) of this article, the withholding must be made at 100%. The withholder shall substitute the transferor, service provider or grantor of the temporary use or enjoyment of goods in the obligation to pay the tax, in the amount corresponding to the withholding.
In the case of residents abroad without an establishment in Mexico, whether individuals or legal entities, who provide the digital services provided for in Article 18-B, Sections I, III and IV of this Law, they must withhold 100% of the value added tax charged. In this case, in addition, when the recipient so requests, they must issue and send electronically to the recipients of the aforementioned digital services in Mexican territory the receipts referred to in Section V of Article 18-D of this Law, either in the name of the person to whom the withholding is made or in their own name.
Paragraph added DOF 08-12-2020
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Provide the Tax Administration Service with the information listed below on their customers who sell goods, provide services or grant the temporary use or enjoyment of goods, in whose operations they have acted as intermediaries, even if they have not collected the consideration and the corresponding value added tax:
- Full name or company name.
- Code in the federal taxpayer registry.
- Unique population registry key.
- Tax domicile.
- Financial institution and standardized interbank code in which payment deposits are received.
- Amount of transactions entered into with its intermediation during the period in question, for each transferor of goods, provider of services or grantor of the temporary use or enjoyment of goods.
- In the case of lodging services, the address of the property.
Such information must be submitted monthly no later than the 10th day of the following month, in accordance with the general rules issued for such purpose by the Tax Administration Service.
For the purposes of the provisions of paragraphs a), b), c), d), e) and g) of this section, persons transferring goods, providing services or granting the temporary use or enjoyment of goods, must provide foreign residents without an establishment in Mexico who provide them with digital intermediation services, the information referred to in the aforementioned paragraphs.
There will be no obligation to provide the information referred to in this section in the case of foreign residents without an establishment in Mexico who provide the digital services provided for in Article 18-B, Sections I, III and IV of this Law, to whom the withholding is made under the terms of Section II, subsection a), second paragraph, of this Article.
Paragraph added DOF 08-12-2020
Article added DOF 09-12-2019
Article 18-K - Individuals and legal entities that carry out activities subject to the payment of value added tax through the persons referred to in Article 18-J of this Law, must comply with the provisions of this Law and, in addition, must offer the price of their goods and services expressly and separately stating the amount of value added tax that corresponds.
Article added DOF 09-12-2019
Article 18-L .- For the purposes of the provisions of Article 18-K of this Law, individual taxpayers who have obtained income up to the amount of $300,000.00 in the immediately preceding fiscal year for the activities carried out with the intermediation of the persons referred to in Article 18-J of the same, may exercise the option referred to in Article 18-M of this Law, provided that they do not receive income for other concepts, with the exception of the income referred to in Chapters I and VI of Title IV of the Income Tax Law, in which case they may exercise the aforementioned option.
Taxpayers that initiate activities may apply the provisions of the preceding paragraph when they estimate that their income for the fiscal year will not exceed the amount established in said paragraph. When in the initial fiscal year they carry out operations for a period of less than twelve months, in order to determine the aforementioned amount, they will divide the income obtained by the number of days comprising the period and the result will be multiplied by 365 days. If the amount obtained exceeds the referred amount, in the following fiscal year the benefit of the previous paragraph cannot be taken.
Article added DOF 09-12-2019
Article 18-M - The taxpayers referred to in Article 18-L of this Law may choose to consider the withholding made in terms of Section II, paragraph a) of Article 18-J of this Law as definitive, when the persons referred to in said Article have made the withholding for the totality of the activities carried out with their intermediation.
The aforementioned taxpayers may also exercise the option when for the activities carried out with the intermediation of the persons referred to in Article 18-J of this Law, the collection of some activities has been carried out by such persons and others directly by the taxpayer, provided that in the latter case the taxpayer files a monthly return for the collections of the considerations made directly, applying a rate of 8%.
Those who exercise the aforementioned option will be subject to the following:
- They must be registered in the Federal Taxpayers Registry before the Tax Administration Service.
- They will not be entitled to any credit or reduction for their expenses and investments with respect to the tax calculated at the rate of 8%.
- They will keep the digital tax receipt by Internet of withholdings and payment information provided by the persons who withheld the value added tax.
- They will issue the digital tax receipt by Internet to the purchasers of goods or services.
- They will file a notice of option with the Tax Administration Service, in accordance with the general rules issued for such purpose by such body, within thirty days following the day in which the taxpayer receives the first payment for the activities carried out through the persons referred to in Article 18-J of this Law.
- They will be relieved from filing informative declarations.
Once the option referred to in this article has been exercised, it may not be changed during a period of five years counted from the date on which the taxpayer has filed the notice referred to in section IV of the preceding paragraph. When the taxpayer ceases to be in the circumstances referred to in Article 18-L of this Law, the exercise of the option provided for in this Article will cease and may not be exercised again.
Article added DOF 09-12-2019
CHAPTER IV
Temporary use or enjoyment of property
Article 19 - For the purposes of this Law, temporary use or enjoyment of property is understood to be the lease, usufruct and any other act, regardless of the legal form used for such purpose, by which a person allows another person to temporarily use or enjoy tangible property, in exchange for a consideration.
The treatment established by this Law for the temporary use or enjoyment of property will be applied to the rendering of timeshare services.
Paragraph added DOF 15-12-1995
The rendering of timeshare services, regardless of the name or form given, is considered to be the corresponding legal act consisting of making available to a person or group of persons, directly or through a third party, the use, enjoyment or other rights agreed upon over an asset or part thereof, in a variable unit within a given class, for previously agreed periods through the payment of an amount or the acquisition of shares or social parts of a legal entity, without in the latter case transferring the assets of the legal entity in question.
Paragraph added DOF 29-12-1997
Article 20 - The tax shall not be paid for the temporary use or enjoyment of the following goods:
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I. Those granted by legal entities authorized to receive deductible donations for income tax purposes.
Section repealed DOF 12/31/1981. Added DOF 09-12-2019
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Real estate destined or used exclusively for housing. If a property has several uses, the tax shall not be paid for the part destined or used as a dwelling. The provisions of this section are not applicable to real estate or part thereof that is provided furnished or is destined or used as hotels or lodging houses.
- Farms dedicated or used only for agricultural or livestock purposes.
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Repealed.
Section repealed DOF 12-30-1980. Added DOF 11-21-1991. Repealed DOF 30-11-2016
V.- Books, newspapers and magazines.
Article 21 . For the purposes of this Law, it is understood that the temporary use or enjoyment of a tangible good in national territory is granted when its use or enjoyment is carried out in national territory, regardless of the place of its material delivery or the celebration of the legal act that gives rise to it.
Article amended DOF 12-11-2021
Article 22 - When the temporary use or enjoyment of tangible property is granted, the tax shall be payable at the time when the person making such grant collects the consideration derived therefrom and on the amount of each one of them.
Article amended DOF 31-12-1998, 30-12-2002
Article 23 - To calculate the tax in the case of temporary use or enjoyment of goods, the value of the consideration agreed in favor of the person granting them, as well as the amounts that are also charged or collected from the person granting the use or enjoyment for other taxes, duties, maintenance expenses, construction, reimbursements, normal or moratory interest, conventional penalties or any other concept shall be considered.
CHAPTER V
Importation of goods and services
Article 24 - For the purposes of this Law, importation of goods or services shall be considered as importation of goods or services:
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The introduction of goods into the country.
Goods are also considered to be introduced into the country when they are destined for temporary import customs regimes for manufacturing, transformation or repair in maquila or export programs; tax warehouse for the assembly and manufacturing process of vehicles; manufacturing, transformation or repair in bonded warehouses; and strategic bonded warehouses.
Paragraph added DOF 11-12-2013
The provisions of the preceding paragraph shall not be applicable to national goods or to those imported definitively, provided that they have not been considered as exported previously to be destined to the above mentioned customs procedures.
Paragraph added DOF 11-12-2013
Reformed fraction DOF 30-12-1980 - The acquisition by persons resident in the country of intangible assets disposed of by non-residents.
- The temporary use or enjoyment, in national territory, of intangible goods provided by non-residents in the country.
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The temporary use or enjoyment, in Mexican territory, of tangible goods whose material delivery was made abroad. The provisions of this section shall not apply in the case of goods for which the value added tax has been effectively paid for their introduction into the country. The tax is not understood to have been effectively paid when it is paid through the application of a tax credit.
Section amended DOF 30-11-2016
- The use in national territory of the services referred to in Article 14, when they are rendered by non-residents in the country. This section is not applicable to international transportation.
When a temporarily exported good returns to the country after having added value abroad for repairs, additions or any other concept that implies an additional value, it will be considered an import of goods or services and the tax must be paid for such value under the terms of Article 27 of this Law.
Paragraph added DOF 12/31/1981
Article 25 - Value added tax shall not be paid on the following imports:
- Those which, under the terms of the customs legislation, are not consummated, are temporary, are in the nature of return of temporarily exported goods, or are subject to transit or transshipment. If the temporarily imported goods are subject to use or enjoyment in the country, the provisions of Chapter IV of this Law shall apply.
-
Those of luggage and household goods referred to in the customs legislation.
Reformed fraction DOF 30-12-1983
-
Those of goods whose alienation in the country and those of services for whose rendering in national territory do not give rise to the payment of the value added tax or when they are of those indicated in article 2o.
Reformed fraction DOF 30-12-1980, 31-12-1987, 21-11-1991, 29-12-1993, 27-03-1995
-
Those of goods donated by residents abroad to the Federation, federal entities, municipalities or any other person authorized by the Ministry of Finance and Public Credit through general rules.
Section added DOF 12/30/1980
-
Works of art that due to their quality and cultural value are recognized as such by the competent official institutions, provided they are intended for permanent public exhibition.
Section added DOF 12/31/1987
-
Works of art created abroad by Mexicans or residents in national territory, which due to their quality and cultural value are recognized as such by the competent official institutions, provided that the importation is made by the author.
Fraction added DOF 28-12-1989
-
Gold, with a minimum content of such material of 80%.
Section added DOF 12/28/1994
-
Vehicles, in accordance with article 62, section I of the Customs Law, provided that the requirements and conditions established by the Ministry of Finance and Public Credit through general rules are complied with.
Section added DOF 29-12-1997
-
Definitive imports of goods for which the value added tax has been paid when destined to the customs regimes of temporary importation for manufacturing, transformation or repair in maquila or export programs; of fiscal deposit to undergo the process of assembly and manufacture of vehicles; of manufacturing, transformation or repair in bonded warehouse, and of strategic bonded warehouse, or of goods that include the goods for which the tax was paid, provided that the definitive importation is carried out by those who have destined the goods to the aforementioned regimes. The provisions of this section shall not be applicable when the tax has been paid by applying the tax credit provided for in Article 28-A of this Law.
Section added DOF 11-12-2013
The exemption referred to in this section shall not be applicable in the case of goods that are destined to the customs regimes of temporary importation for manufacturing, transformation or repair in maquila or export programs; of fiscal deposit to undergo the assembly and manufacturing process of vehicles; of manufacturing, transformation or repair in bonded warehouses; and of strategic bonded warehouses.
Paragraph added DOF 12/30/2002. Amended DOF 11-12-2013
Reformed fraction DOF 28-12-1989, 26-12-1990
Article 26 - The importation of goods or services is considered to be effected:
-
At the time the importer submits the customs declaration for processing under the terms of the customs legislation.
Reformed fraction DOF 28-12-1989
- In case of temporary importation when becoming definitive.
-
In the cases provided for in sections II to IV of Article 24 of this Law, at the time the consideration is actually paid.
When periodic considerations are agreed, the time at which each consideration is paid shall be taken into account.
Reformed fraction DOF 12-30-2002
-
In the case of use in national territory of services rendered by non-residents in the country, at the time the consideration is effectively paid.
Reformed fraction DOF 30-11-2016, 09-12-2019
Article 27 . To calculate the value added tax in the case of the importation of tangible goods, the value used for the purposes of the general import tax shall be considered, plus the amount of the latter tax and the amount of the other taxes and charges payable on the importation.
Amended paragraph DOF 11-12-2013
In the case of goods that are destined to the customs regimes of temporary importation for manufacturing, transformation or repair in maquila or export programs; of fiscal deposit to undergo the assembly and manufacturing process of vehicles; of manufacturing, transformation or repair in a bonded warehouse, and of strategic bonded warehouse, in order to calculate the value added tax, the customs value referred to in the Customs Law will be considered, plus the amount of the taxes and duties that would have to be paid in the case of a definitive importation.
Paragraph added DOF 11-12-2013
The value to be taken into account in the case of importation of goods or services referred to in sections II, III, IV and V of article 24, shall be the value that would correspond to them under this Law for the alienation of goods, use or enjoyment of goods or rendering of services, in national territory, as the case may be.
Amended paragraph DOF 21-11-1991, 30-11-2016
In the case of goods exported temporarily and returned to the country with an increase in value, this will be the value used for the purposes of the general import tax, with the additions referred to in the first paragraph of this article.
Paragraph added DOF 12/31/1981
Article 28 - In the case of importation of tangible goods, the payment shall be provisional and shall be made jointly with the payment of the general import tax, including when the payment of the latter is deferred due to the fact that the goods are in bonded storage in the bonded warehouses, without crediting being accepted against such payment.
Amended paragraph DOF 12/31/1987
In the case of goods destined to the temporary import customs regimes for manufacturing, transformation or repair in maquila or export programs; tax warehouse to undergo the assembly and manufacturing process of vehicles; manufacturing, transformation or repair in bonded warehouse, and strategic bonded warehouse, the payment shall be made at the latest at the time the respective customs declaration is presented for processing.
Paragraph added DOF 11-12-2013
In the case of goods for which the taxpayer is not required to pay the general import tax, taxpayers shall pay the tax established by this Law, by means of a declaration to be filed with the corresponding customs office.
The value added tax paid when importing goods will give rise to crediting under the terms and with the requirements established in this Law.
Amended paragraph DOF 07-06-2005
Goods may not be withdrawn from the customs office or bonded warehouse without prior payment of the corresponding payment in accordance with this Law.
Article reformed DOF 31-12-1979, 30-12-1980
Article 28-A . Persons who introduce goods under the temporary import customs regimes for manufacturing, transformation or repair in maquila or export programs; tax warehouse to undergo the assembly and manufacturing process of vehicles; manufacturing, transformation or repair in bonded warehouse, and strategic bonded warehouse, may apply a tax credit consisting of an amount equivalent to 100% of the value added tax payable on the import, which will be creditable against the value added tax payable on the aforementioned activities, provided that they obtain a certification from the Tax Administration Service (Servicio de Administración Tributaria). In order to obtain such certification, the companies must prove that they comply with the requirements that allow an adequate control of the operations carried out under the aforementioned regimes, in accordance with the general rules issued for such purpose by the Tax Administration Service.
The certification referred to in the preceding paragraph shall be valid for one year and may be renewed by the companies within thirty days prior to the expiration of the term of validity, provided that they can prove that they continue to comply with the requirements for their certification.
The tax covered by the tax credit provided for in this article shall not be creditable in any way.
The tax credit referred to in this article will not be considered as accumulated income for income tax purposes.
The persons referred to in this article who do not exercise the option to be certified, may not pay the value added tax for the introduction of the goods to the aforementioned customs regimes, provided that they guarantee the tax interest by means of a bond granted by an authorized institution, in accordance with the general rules issued by the Tax Administration Service for such purpose.
Article added DOF 1989-12-28. Repealed DOF 12-26-1990. Added DOF 11-12-2013.
CHAPTER VI
Export of goods or services
Article 29 - Companies resident in the country will calculate the tax by applying the 0% rate to the value of the sale of goods or rendering of services, when both are exported.
Amended paragraph DOF 12/31/1981
For the purposes of this Law, an export of goods or services is considered to be an export of goods or services:
-
The one that has the character of definitive in the terms of the Customs Law.
Reformed fraction DOF 12/31/1998, 12/31/2000, 12/30/2002
- The alienation of intangible goods made by a person resident in the country to a person residing abroad.
- The temporary use or enjoyment abroad of intangible goods provided by persons resident in the country.
- The use abroad of services rendered by residents in the country, for the concept of:
-
Technical assistance, technical services related thereto and information related to industrial, commercial or scientific experiences.
Reformed clause DOF 30-12-1980
-
Maquila and submaquila operations for export under the terms of the customs legislation and the Decree for the Promotion and Operation of the Export Maquiladora Industry. For the previous effects, it will be understood that the services are used abroad when the goods object of the maquila or submaquila are exported by the maquiladora company.
Reformed clause DOF 30-12-1983, 30-12-2002
-
Advertising.
Subsection added DOF 12-30-1980
-
Commissions and mediations.
Subsection added DOF 12-30-1980
-
Insurance and reinsurance, as well as bonds and reinsurance.
Subsection added DOF 12-30-1980
-
Financing operations.
Subsection added DOF 12-30-1980
-
Filming or recording, provided that they comply with the requirements set forth in the regulations of this Law.
Subsection added DOF 12-30-2002
-
Telephone answering service in call centers for calls originating abroad, which is contracted and paid for by a resident abroad without a permanent establishment in Mexico.
Subsection added DOF 28-06-2005
-
The following information technology services:
- Development, integration and maintenance of computer applications or computer systems.
- Information processing, storage, backups, as well as database administration.
- Hosting of computer applications.
- Modernization and optimization of information security systems.
- Continuity in the operation of the above services.
The provisions of this subsection shall be applicable provided that the companies comply with the following:
- Make full use of technological infrastructure, human and material resources, located in the national territory.
-
That the IP address of the electronic devices through which the services are provided, as well as that of its Internet service provider are located in national territory and that the IP address of the electronic devices of the service receiver and that of its Internet service provider are located abroad.
For the purposes of this Law, an IP address is considered to be the unique numerical identifier formed by binary values assigned to an electronic device. Said identifier is essential for electronic devices to be able to connect, announce and communicate through the Internet protocol. The identifier makes it possible to locate the geographical location of the device.
- The tax receipt includes the registration or tax number of the foreign resident who contracted and paid for the service, without prejudice to other requirements that must be complied with in accordance with the tax provisions.
- That the payment is made through electronic means and comes from accounts of financial institutions located abroad, which must be made to an account of the service provider in credit institutions in Mexico.
The obligations mentioned in the preceding paragraphs must be complied with in accordance with the general rules issued by the Tax Administration Service.
The information technology services provided for in this subsection shall not be considered exported in the following cases:
-
When virtual private networks are used to provide such services. For the purposes of this Law, a virtual private network is considered as the network technology that allows an extension of a local network over a public network, creating a secure private connection through a public network and admitting the connection of external users from another geographical location from where the organization's server or applications are located.
-
When the services are provided, fall or are applied in goods located in the national territory.
Subsection added DOF 30-11-2016
Reformed fraction DOF 31-12-1979
-
The international transportation of goods provided by residents in the country and the port services of loading, unloading, storage, custody, stowage and carriage within the ports and port facilities, provided that they are provided in maneuvers for the export of goods.
Section added DOF 12/31/1979. Amended DOF 29-12-1993
-
Air transportation of persons and goods, rendered by residents in the country, for the part of the service that in the terms of the third paragraph of Article 16 of this Law is not considered to be rendered in national territory.
Section added DOF 12/31/1979. Amended DOF 31-12-1998, 11-12-2013, 09-12-2019.
-
(Repealed).
Section added DOF 15-12-1995. Amended DOF 2002-12-30. Repealed DOF 11-12-2013
-
(Repealed).
Section added DOF 12/31/1998. Amended 31-12-2000. Repealed DOF 12-30-2002.
The provisions of the first paragraph of this article shall apply to residents in the country who render independent personal services that are used in their entirety abroad by residents abroad without an establishment in the country.
Paragraph added DOF 12/29/1993. Amended DOF 12-30-2002
Article 30 - In the cases provided for in Articles 9 and 15 of this Law, the exporter of goods or services shall calculate the tax by applying the 0% rate to the value of the sale or rendering of services. The crediting will also be applicable when the companies resident in the country export tangible goods to alienate them or to grant their use or enjoyment abroad.
Amended paragraph DOF 12/31/1981
Likewise, the crediting will be applicable when the companies residing in the country return abroad the goods that have been destined to the customs regimes of temporary importation for manufacturing, transformation or repair in maquila or export programs; of fiscal deposit to undergo the assembly and manufacturing process of vehicles; of manufacturing, transformation or repair in bonded warehouse, and of strategic bonded warehouse, provided that such tax has not been credited in the terms of this Law.
Amended paragraph DOF 1976-12-31. Repealed DOF 30-12-1980. Added DOF 11-12-2013
The refund in the case of export of tangible goods will proceed until the export is consumed, under the terms of the customs legislation. In other cases, it will proceed until the consideration is collected and in proportion to the same.
Amended paragraph DOF 31-12-1979, 30-12-2002
Article 31 . Foreigners with tourist status in accordance with the General Population Law who return abroad by air or sea, may obtain a refund of the value added tax that has been transferred to them in the acquisition of merchandise, provided that the following requirements are met:
- That the tax receipt issued by the taxpayer meets the requirements established for such purpose by the Tax Administration Service through general rules;
- That the purchased goods actually leave the country, which will be verified at the airport or maritime customs, as the case may be, through which the tourist departs, and
-
That the value of the purchases made per establishment, stated in the tax receipt presented by the tourist at the moment of leaving the national territory, covers a minimum amount in national currency of 1,200 pesos.
The Tax Administration Service will establish the operating rules to carry out the refunds referred to in this article and may grant concessions to individuals to administer such refunds, provided that the services to carry out the refund do not generate a cost for the aforementioned body.
In any case, the refund made to foreigners with tourist status must be reduced by the administration cost corresponding to the refunds made.
Article amended DOF 12/31/1979. Repealed DOF 12/31/1981. Added DOF 28-12-1989. Amended DOF 12-26-1990, 12-15-1995, 12-30-1996, Repealed DOF 12-31-1998. Added DOF 08-12-2005
CHAPTER VII
Obligations of taxpayers
Article 32 - Those obligated to pay this tax and the persons who carry out the acts or activities referred to in Article 2o.-A have, in addition to the obligations indicated in other articles of this Law, the following obligations:
Amended paragraph DOF 30-12-1980, 27-03-1995, 15-12-1995
-
Keep accounting records in accordance with the Federal Fiscal Code and its Regulations.
Reformed fraction DOF 30-12-1980, 31-12-1981, 11-12-2013
- In the case of commission agents, to separate in their accounting and records the operations they carry out on their own account from those they carry out on behalf of the principal.
-
Issue and deliver tax receipts.
Section amended DOF 30-12-1980, 30-12-1983, 30-12-1983, 31-12-1984, 27-03-1995, 15-12-1995, 31-12-1998, 30-12-2002, 07-12-2009, 11-12-2013
-
To file the returns indicated in this Law at the authorized offices. If a taxpayer has several establishments, it will file a single payment declaration for all of them, at the authorized offices corresponding to the taxpayer's tax domicile. The provisions of this section are not applicable to the cases indicated in Articles 28 and 33 of this Law.
Taxpayers that have several establishments must keep, in each one of them, a copy of the payment declarations, as well as provide copies thereof to the tax authorities of the states where such establishments are located, when so required.
Reformed fraction DOF 31-12-1979, 30-12-1980, 31-12-1985, 31-12-1987, 28-12-1989, 26-12-1990, 30-12-2002
-
To issue tax receipts for tax withholdings made in the cases provided for in Article 1o.-A, and to provide the tax authorities monthly, through the electronic means and formats indicated by the Tax Administration Service, the information on the persons from whom the tax established in this Law has been withheld, no later than the 17th day of the month immediately following the month to which such information corresponds.
Amended paragraph DOF 30-12-2002, 28-06-2006, 11-12-2013
The Federation and its decentralized agencies, as the case may be, shall also be obliged to comply with the provisions of this section.
A, section II, subsection a) of this Law, may choose not to provide the tax receipt referred to in the first paragraph of this section, provided that the individual who renders the professional services or has granted the temporary use or enjoyment of goods, issues a tax receipt that complies with the requirements referred to in Articles 29 and 29-A of the Federal Tax Code and the receipt expressly states the amount of the tax withheld. In this case, the individuals issuing the tax voucher may consider it as proof of tax withholding and credit it in accordance with the terms of the tax provisions. The provisions of this paragraph in no case release the legal entities from making, in due time and form, the withholding and payment of the tax and the filing of the corresponding informative returns, in the terms of the tax provisions with respect to the persons to whom such withholdings have been made.
Paragraph added DOF 09-12-2019
Section added DOF 12/31/1998
-
Persons who regularly make the withholdings referred to in Articles 1A and 3, third paragraph of this Law, shall
submit notice thereof to the tax authorities within 30 days following the first withholding made.
Section added DOF 12/31/1998
-
Provide the value added tax information requested in the income tax returns.
Fraction added DOF 12-30-2002
-
Provide monthly to the tax authorities, through the electronic means and formats indicated by the Tax Administration Service, the corresponding information on the payment, withholding, crediting and transfer of the value added tax in the operations with its suppliers, breaking down the value of the acts or activities by rate at which the value added tax was transferred or transferred, including activities for which the taxpayer is not obligated to pay, such information shall be submitted no later than the 17th day of the month immediately following the month to which such information corresponds.
Section added DOF 06-28-2006. Amended DOF 30-11-2016, 09-12-2019
(The paragraph that reads: Taxpayers dedicated to .......... ) is repealed.
Paragraph added DOF 12-30-1980. Repealed DOF 31-12-1981.
Note: The previous paragraph which stated: "Taxpayers engaged in agriculture, livestock or commercial fishing, for whose activities only the 0% rate is applicable, may choose to be released from the obligations established in sections I, II and IV of this article and in such case, they will not be entitled to a refund", was expressly repealed by Decree DOF 12/31/1981. However, in the Decree dated 12/31/1987, reference is made to the initial phrase of said paragraph: "Taxpayers engaged in:", as if it had not been previously repealed.
Taxpayers who have joint ownership of a business and the members of a marital partnership shall designate a common representative prior notice of such designation before the tax authorities, and it shall be the representative who, on behalf of the joint owners or the spouses, as the case may be, shall comply with the obligations established in this Law.
Paragraph added DOF 12-30-1980. Amended DOF 31-12-1998
In the event that the income derives from acts or activities carried out by an estate, the legal representative of the estate will pay the tax by filing payment statements for the corresponding calendar month, on behalf of the heirs or legatees.
Paragraph added DOF 30-12-1980. Amended DOF 26-12-1990, 30-12-2002.
In the case of independent personal services rendered through an association or civil society, it will be the one that, on behalf of the associates or partners, complies with the obligations set forth in this Law.
Paragraph added DOF 12/31/1982. Amended DOF 30-12-1983
Reform DOF 12/31/2000: Repealed the last paragraph of the article (previously added by DOF 12/29/1997).
Article 33 - When a good is sold or a service is rendered accidentally, for which tax is payable under the terms of this Law, the taxpayer shall pay it by means of a declaration to be filed at the authorized offices within 15 days following the day on which the consideration is obtained, and no crediting will be accepted against such payment. In the imports referred to in sections II, III and V of Article 24 of this Law, which are made on an occasional basis, the payment shall be made in the terms mentioned above. In occasional imports of tangible goods, payment shall be made as established in Article 28 of this Law. In these cases, the taxpayer shall not file a monthly tax return or keep accounting records, but must issue the tax receipts referred to in Section III of Article 32 of this Law and keep them during the term referred to in Article 30, third paragraph of the Federal Tax Code.
Amended paragraph DOF 09-12-2019
In the case of the sale of real estate for which the tax must be paid under the terms of this Law, recorded in a public deed, notaries, brokers, judges and other notaries who by law have notarial functions, shall calculate the tax under their responsibility and shall pay it within fifteen days following the date on which the deed is signed, at the authorized office corresponding to their domicile; they shall also issue a tax receipt stating the amount of the transaction and the tax withheld. The provisions of this paragraph are not applicable in the case referred to in Article 1o.-A, Section I of this Law.
In the case of real estate leasing lawsuits in which the lessee is ordered to pay the overdue rent, the judicial authority will require the creditor to prove that it has issued the corresponding tax receipts. In the event that the creditor does not prove that it has issued such vouchers, the judicial authority must inform the Tax Administration Service of the omission within a maximum period of 5 days from the expiration of the term granted by the judicial authority to the creditor to comply with the requirement. The aforementioned information must be sent to the aforementioned decentralized body in accordance with the general rules issued for such purpose by said body.
Paragraph added DOF 09-12-2019
Article amended DOF 12-31-1979, 12-30-1980, 12-30-1983, 12-26-1990, 12-30-1996, 12-31-1998, 12-30-2002, 12-11-2013
Article 34 - When the consideration collected by the taxpayer for the sale of goods, the rendering of services or the granting of the use or temporary enjoyment of goods, is not in cash or checks, but totally or partially in other goods or services, the market value or in its absence the appraisal value will be considered as the value of such goods or services. The same values will be taken into account in the case of activities for which the tax established in this Law must be paid, when there is no consideration.
Amended paragraph DOF 12/30/2002
In exchanges and payments in kind, value added tax must be paid for each good whose ownership is transferred, or whose use or temporary enjoyment is provided, or for each service rendered.
Article 35 .- (Repealed).
Article amended DOF 30-12-1980, 31-12-1981, 31-12-1982, 30-12-1983, 31-12-1985, 28-12-1989. Repealed DOF 29-12-1997
Article 35-A .- (Repealed).
Article added DOF 12/31/1982. Amended DOF 30-12-1983, 31-12-1985. Repealed DOF 29-12-1997.
Article 35-B .- (Repealed).
Article added DOF 12/31/1987. Repealed DOF 29-12-1997
Article 36 .- (Repealed).
Article amended DOF 12/31/1981, 12/30/1983, 12/31/1985. Repealed DOF 29-12-1997
Article 37 .- (Repealed).
Article amended DOF 12/31/1981, 12/28/1989. Repealed DOF 29-12-1997
CHAPTER VIII
Powers of the authorities
Article 38 .- (Repealed).
Article repealed DOF 31-12-1981
Article 39 - To the amount of the presumptive determination of the value of the acts or activities for which the tax must be paid under the terms of this Law, the corresponding tax rate shall be applied in accordance with this Law, and the result shall be reduced by the creditable amounts that are proven.
Article amended DOF 30-12-1980, 31-12-1981,
Article 40 .- (Repealed).
Article repealed DOF 31-12-1981
CHAPTER IX
Of the participations to the federal entities
Article 41 .- The Ministry of Finance and Public Credit shall enter into an agreement with the States that request to join the National Fiscal Coordination System to receive participations under the terms of the Fiscal Coordination Law, agreeing not to maintain local or municipal taxes on:
-
The acts or activities for which value added tax must be paid or on the benefits or considerations derived therefrom, or on the production of goods when such tax must be paid for their sale, except for the rendering of lodging, camping, trailer park and time-sharing services.
For the purposes of this section, only lodging, camping, trailer parks and time-sharing services shall be considered as lodging, not including food and other services related thereto.
Local or municipal taxes established by the federal entities on the sale of goods or rendering of services mentioned in this section shall not be considered as value for calculating the tax referred to in this Law.
Reformed fraction DOF 31-12-1979, 15-12-1995, 30-12-1996
-
The alienation of goods or rendering of services when one or the other is exported or is one of those indicated in Article 2o.-A of this Law.
Reformed fraction DOF 31-12-1979, 30-12-1980, 21-11-1991, 27-03-1995, 15-12-1995, 11-12-2013
- The goods that integrate the assets or on the profit or capital of the companies, except for the possession or use of automobiles, buses, trucks and non-agricultural fifth wheel type tractors, aircraft, boats, sailboats, motorized water skis, aquatic motorcycle, surfboard with motor, electric automobiles and motorcycles. Reformed fraction DOF 30-12-1980, 15-12-1995
- Interest, debt securities, derivative financial transactions and products or yields derived from their ownership or disposal. Reformed fraction DOF 30-12-1980, 29-12-1993
-
The temporary use or enjoyment of a dwelling house.
Section added DOF 12/30/1980
-
Public shows consisting of plays and circus performances, which together exceed a local tax of 8% calculated on the
total income derived from such activities.
Amended paragraph DOF 12/31/98
This limitation includes any additional tax that may be levied on them in connection with the aforementioned activities.
Section added DOF 11-21-1991
-
The sale of tickets and other vouchers that allow participation in lotteries, raffles, sweepstakes and contests of all kinds, organized by decentralized public agencies of the Federal Public Administration, whose corporate purpose is to obtain resources to be destined to public assistance.
Section added DOF 12-30-1996
Nor will they maintain additional local or municipal taxes on their share of federal taxes.
The Federal District shall not establish or maintain in force the levies referred to in this Article.
Reform DOF 30-12-1996: Repealed the last paragraph of the article (previously added by DOF 15-12-1995).
Article 42 - Excepted from the provisions of the preceding article are the taxes that the States or the Federal District have established or establish on the sale of constructions for which value added tax must be paid.
In no case shall the provisions of the preceding article be understood as limiting the power of the States and the Federal District to levy local or municipal taxes on the ownership or possession of land or buildings, or the transfer of ownership thereof, or on capital gains or specific improvements, provided that they do not discriminate against value added tax payers.
The provisions of the two preceding paragraphs shall not apply with respect to the sale of non-amortizable real estate participation certificates referred to in the second paragraph of Section VII of Article 9 of this Law.
Paragraph added DOF 12-23-2005
In the case of electric energy, the federal entities may not decree taxes, contributions or local or municipal levies, whatever their origin or denomination, on:
Paragraph added DOF 12/31/1979
-
Production, introduction, transmission, distribution, sale or consumption of electric energy.
Fraction added DOF 31-12-1979
-
Acts of organization of electric power generating or importing companies.
Fraction added DOF 31-12-1979
-
Capital invested for the purposes set forth in Section I.
Fraction added DOF 31-12-1979
-
Issuance or issuance by electric power generating and importing companies of securities, shares or debentures and transactions related thereto.
Fraction added DOF 31-12-1979
-
Dividends, interest or profits represented or received by the companies mentioned in the preceding section.
Fraction added DOF 31-12-1979
Exempt from the provisions of the preceding sections is the private property tax levied on land, but not on improvements and urban property belonging to producing and importing plants, as well as the fees for public lighting services charged by municipalities, even when electricity consumption is used as the basis for their determination.
Paragraph added DOF 12/31/1979. Amended DOF 28-12-1989
Article 43 . The Federal Entities may establish schedular taxes on the income obtained by individuals who receive income for rendering professional services, for granting the temporary use or enjoyment of real estate, for alienation of real estate, or for business activities, without it being considered a breach of the agreements entered into with the Ministry of Finance and Public Credit or of Article 41 of this Law, when such taxes meet the following characteristics:
-
In the case of individuals who obtain income from the rendering of professional services, the tax rate that may be established will be between 2% and 5%.
For the purposes of this section, income from the rendering of professional services will be understood as remunerations derived from independent personal services that are not assimilated to income from the rendering of subordinate personal services, in accordance with Article 94 of the Income Tax Law. The Federal Entities may tax within the schedular tax on wages or salaries, the independent personal income that is assimilated to the income for the rendering of a subordinated personal service.
Amended paragraph DOF 11-12-2013
The Federal Entities that establish the tax referred to in this section, may only consider as subject to such tax, the taxable income of the taxpayers that is attributed to the fixed bases in which they provide the services that are located in the Federal Entity in question. When the services are rendered outside the fixed base, it will be considered that the activity is carried out in the premises that serve as a base for the person providing such services.
When a taxpayer has fixed bases in two or more States, in order to determine the tax applicable to each one of them, the taxable income obtained by all the fixed bases it has must be considered, and the result will be divided among them in the proportion that the income obtained by each fixed base represents with respect to the total income.
-
In the case of individuals who obtain income for granting the temporary use or enjoyment of real estate, the tax rate that may be established will be between 2% and 5%.
The tax on income for granting the temporary use or enjoyment of real estate will correspond to the Federal Entity where the property in question is located, regardless of whether the taxpayer has its tax domicile outside such Federal Entity.
-
In the case of individuals who obtain income from the sale of real estate, the tax rate that may be established will be between 2% and 5%, and must be applied on the gain obtained from the sale of real estate located in the Federal Entity in question, regardless of whether the taxpayer's tax domicile is outside such Federal Entity.
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In the case of individuals who obtain income from business activities, the tax rate that may be established will be between 2% and 5%.
The Federal Entities that establish the tax referred to in this section may only tax the taxable income obtained by taxpayers from establishments, branches or agencies located in the Federal Entity in question.
When a taxpayer has establishments, branches or agencies in two or more States, in order to determine the tax applicable to each one of them, the sum of the taxable income obtained by all the establishments, branches or agencies it has must be considered, and the result will be divided among them in the proportion that the income obtained by each establishment, branch or agency represents with respect to the total income.
Reform DOF 11-12-2013: Repealed the then fourth paragraph of the section.
The Federal Entities may establish different rates within the limits established in this article for each of the schedular taxes referred to in this article.
The base of the schedular taxes referred to in this article shall consider the same income and the same deductions established in the federal Income Tax Law, for income similar to that contemplated in the aforementioned schedular taxes, without including the local schedular tax.
When the income referred to in section III of this article derives from the contribution of real estate that the settlors, individuals, make to the trusts referred to in article 187 of the Income Tax Law, the schedular tax must consider the gain at the same time that the Income Tax Law establishes for the accrual of such income.
Paragraph added DOF 12-23-2005. Amended DOF 11-12-2013
The Federal Entities that establish the transfer tax referred to in section III of this article, may not tax the sale of non-amortizable real estate participation certificates, when they are registered in the National Registry of Securities and Intermediaries and their sale is carried out in a stock exchange under the terms of the Securities Market Law or in recognized markets in accordance with international treaties that Mexico has in force.
Paragraph added DOF 12-23-2005
Likewise, the Federal Entities may agree with the Federation, through the Ministry of Finance and Public Credit, that the local taxes, if any, established in their Federal Entity be paid in the same federal income tax returns.
TRANSITIONS
Article One - This Law shall enter into force throughout the Republic on January 1, 1980.
Article Second - Upon the entry into force of this Law, the following laws and decrees shall be abrogated:1.- Federal Commercial Income Tax Law.
2.- Law on the Tax on the Resale of Lubricating Oils and Fats.
3.- Law on the Tax on the Sale and Purchase of First Hand Carpets, Rugs and Tapestries.
4.- Law on the Tax on Cottonseed Cotton Seed Stripping.
5.- Automobile and Assembled Truck Tax Law.
Decree whereby the tax to be levied on Benzol, Toluol, Xylol and Coal Tar Naphthas, destined for domestic consumption in the country is fixed.
7.- Cement Production Tax Law.
8.- Matches and Matches Tax Law.
9.- Law of the Tax on the Sale and Purchase of First Hand Electronic Articles, Discs, Tapes, Vacuum Cleaners and Polishing Machines.
l0.- Rubber Tire and Tube Tax Law.
ll.- Law on the Taxation of Companies that operate Radio or Television Stations.
Law on Tax on Vehicles Propelled by Diesel Type Engines and Engines Conditioned for the use of Liquefied Petroleum Gas.
l3.- Law of First Hand Sale and Purchase of Glass or Crystal Articles.
l4.- Federal Law of the Tax on Freight and Passages.
l5.- Decree relative to the tax of l0% on gross receipts of the Railroads.
l6.- Decree establishing a Tax on the Use of Nationally Owned Water in the Production of Motive Power.
l7.- Forestry Exploitation Tax Law.
l8.- Fishing Exploitation Tax and Duties Law.
Article Three - Taxes caused in accordance with the laws referred to in the preceding article, prior to the effective date of this Law, must be paid in the amount, form and terms established in said provisions.
Article Fourth - Taxpayers who, upon the entry into force of this Law, are included in Article 35, shall continue to pay during the year 1980 the same tax that the tax authorities have fixed or fix for them, which shall be considered equivalent to the difference between the amount of the tax established in this Ordinance and the amounts that may be credited in accordance with this Ordinance. In the year 1998, of the tax resulting from applying the rates of this Law to the amount of the considerations for which value added tax must be paid, 3% of the amount of the sales, not subject to verification and, in addition, the amount transferred to such taxpayers in documentation that meets the tax requirements, will be credited. As of 1982, such 3% will no longer be credited and only the amount of the tax transferred to the mentioned taxpayers, resulting from the documentation that meets the tax requirements established in this Law, will be credited.
Article Five - Taxpayers who, as of January 1, 1979, acquire goods destined to form part of their fixed assets, may credit 50% of the federal tax on commercial income caused at the time such goods were sold to them, against the value added tax that they must pay, in accordance with this Law.
Antonio Riva Palacio López, D.P.- Antonio Ocampo Ramírez, S.P.- Pedro Avila Hernández, D.S.- Joaquín E. Repetto Ocampo, S.S.-Rubs.
In compliance with the provisions of Section I of Article 89 of the Political Constitution of the United Mexican States and for its due publication and observance, I issue the present Decree in the residence of the Federal Executive Power, in the city of Mexico, Federal District, on the twenty-second day of December of nineteen hundred and seventy-eight.- José López Portillo.- Rubric.- The Secretary of Finance and Public Credit, David Ibarra Muñoz.- Rubric.- The Secretary of the Interior, Jesús Reyes Heroles.- Rubric.