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Mexico: Reform initiative to reduce VAT refund timing

Mexico: Reform initiative to reduce VAT refund timing

A proposal that is part of a tax law reform initiative, submitted on 22 September 2020 to the Congress, would reduce the recovery period for refunds of value added tax (VAT).


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The proposed tax reform initiative is intended to reactivate the Mexican economic in the wake of the current economic crisis stemming from the coronavirus (COVID-19) pandemic. Industry sectors that have been particularly affected by this crisis include the tourism, transport, and global supply chain industries.

Support for the proposal for changes to the VAT refund measures is based on claims that certain existing measures have delayed and affected taxpayers with regard to the current VAT refund process—including the recent elimination of an expedited process to authorize VAT refunds for exporting companies holding ''AAA,'' “AA” and “A” certifications, and certain other restrictions that are viewed as unnecessary and excessive requirements.

VAT refund proposal

In general, the main purpose of the initiative would be for economic revitalization. With respect to VAT refunds, the initiative proposes that favorable VAT balances would be refunded in 15 days of the filing of the refund claim, instead of the current 40 days. The tax authorities could require additional information from taxpayers during the following 10 days after the refund claim is filed, and taxpayers would then have an additional 10 days to respond.

In some instances, a second notice from the tax authorities could be issued, also with similar deadlines for information and subsequent response periods.

For more information, contact a tax professional with the KPMG firm in Mexico:

Antonio Zuazua | +52 81 8122-1938 |

Armando Lara | +52 55 5246-8374 |

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