The service recipient must verify that the service provider is registered with the Labor Authority to claim a credit for the VAT paid for specialized services. The service recipient must also obtain from the service provider a copy of the provider’s VAT tax returns and wire transfer demonstrating the remittance of the VAT to the tax authorities.
Because the VAT return includes information on an aggregate basis and not necessarily on a project or client-by-client basis, the service recipient may have to conduct a reconciliation to show that the VAT related to a specific project or client is included in the amounts reported and remitted to the tax authorities.
Source: EY
Latest Posts in "Mexico"
- Mexico’s 2026 SAT Tax Regularization Program: Key Eligibility, Benefits, and Deadlines for Taxpayers
- Updated Mexican VAT Register Now Includes 272 Non‑Resident Digital Service Providers
- SAT Unveils 2026 Master Plan to Combat Fake Invoices and Modernize Tax Compliance in Mexico
- SAT Confirms CSF Not Required for Electronic Invoicing; Noncompliance May Lead to Fines
- Key Tax Changes for Mexican Retailers Under the 2026 Miscellaneous Tax Resolution (RMF)
