Mexico Announces Implementation of Expedited VAT Refunds for Temporary Imports

The Mexican tax authorities recently announced that 635 company have been issued certificates allowing them to receive VAT refund more quickly on temporary imports. The temporary import VAT refunds are for Maquila companies, which are companies established in free zones in Mexico and produce goods for export.

Prior to 2014, Maquila companies were exempt from VAT on temporary imports, but changes to Mexican tax law introduced a 16% rate of VAT. A system to expedite refunds was going to be lau…