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Mexico Sales Tax Rebate Program

Sales tax rebates will be paid to foreign visitors beginning in June to enhance the experience of traveling to Mexico and make the country a destination of choice for international tourists. The measure will go into effect once the Tax Administration Service (TAS), grants concessions to three companies to operate the program.

The Value Added Tax (VAT) will be returned to foreign tourists who can prove they have spent a minimum of 1,200 pesos (approximately $116.00 dollars) – on Mexican territory and who are returning home by sea or air.

Following the model established in other parts of the world, sales tax paid for the purchase of services, such as lodging and food, will not be refunded.

The refunds are applicable for purchases made with debit or credit cards, but only for cash transactions in which the cost of the item was less than 3,000 pesos. The purchases can be made in stores and establishments that are affiliated with a TAS -authorized service operator.

Tourists will have the right to receive up to 50 percent of the net rebate – an amount not to exceed 10,000 pesos – in the form of cash; the remaining 50 percent will be refunded via electronic funds transfer within a period of 40 days.

Travelers that visit our country should present proof that they received the merchandise from the store of purchase and submit a reimbursement request form, along with bank statement.

Foreigners visiting our country should present receipts for their purchases, a form soliciting the rebate and if necessary, a bank receipt. In each case, the rebate operator will install clearly identified service centers where the relevant documentation can be verified and the sales tax refunded.

The procedure will be implemented gradually across the country. The first phase will be launched this summer at air terminals in Mexico City, Cancun, Guadalajara, Los Cabos and Puerto Vallarta, all of which are cities with a sizable flow of international visitors.

Posted by Geoff on June 12, 2008 | Permalink





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