E-News 2007 -

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

::: VALUE ADD TAX REBATE or 0% I.V.A. :::

 

 

Impuesto al Valor Agregado (IVA) or (VAT, "value-added tax" in English) is a tax applied in Mexico and other countries of Latin America and Spain. This statutory provision concerning the “Value-Added tax (VAT) Rebate” affects the following:

 

  • Only applies exclusively to foreign tourist participating in Congresses, Conventions, Exhibitions, Fairs or Meetings held in Mexico.
  • The non-nationalist guest must provide a copy of their migratory documents and passport, it is important to mention that if one of these documents is missing, the hotel will not be allowed to rebate the 10 % IVA or also known as the VAT tax.
  • Hospitality services are to be understood and used as complementary services that need to be provided by the Hotel (Set –up, audience registration, masters of ceremony, translators, hosting staff, audiovisual projection, decoration, security and cleaning providing they are relevant to the event).Food & Beverage services are to be considered as hospitality services when delivered as part of a meeting package provided by the Hotel.
  • It’s worth mentioning that this rule stipulates that incentives trips given as recognition to people for their work performance or any other reason are not considered in the previous definition.
  • Payment should be received though a wire transfer from a foreign account to a Mexican bank or a credit card issued abroad. No other methods of payment are permitted.
  • Temporary uses of convention and exhibition centers, as well as complementary services delivered within these facilities are also to be included in these provisions.
  • This Rebate can apply up to two days prior and two days after the event for the attendees.
  • Additionally it is considered that when hospitality services are hired through a travel agency, they then can be paid for by the tourist or foreign business entity with a nominative check which is marked “ to be credited to the beneficiary’s account” in the memo portion of the check or by a wire transfer to its financial institution.