Mexican Supreme Court postpones debate on VAT for IMMEX companies.

To Our Clients and Friends:

Please be advised that on February 27, 2025, the Mexican Supreme Court (SCJN) decided to postpone its discussion, analysis, and ruling on a contradiction of criteria regarding the application of Value Added Tax (VAT) regulations to virtual export transactions conducted by IMMEX companies.

This ruling could establish whether the double imposition of VAT on IMMEX companies is legally justified. It will examine the legality of applying VAT twice when IMMEX companies bring in raw materials under the virtual exportation mechanism but do not fulfill the obligation to export the final goods abroad, opting to sell them within Mexico instead.?

We will continue to monitor this matter and provide updates as new developments arise.

Sincerely,

Ernesto Velarde Danache, Inc.