Mexico: Temporary restriction of digital seal certificates for issuance of digital tax receipts

The tax authorities may temporarily restrict the use of digital seal certificates for the issuance of digital tax receipts if the following tax obligations are not met:

• Failure to file the annual declaration or more than two provisional payments
• If during the administrative enforcement procedure or in the exercise of verification powers, the taxpayer is not located
• It is detected that the tax receipts issued were used to cover non-existent, simulated or illegal operations
• If the taxpayer is located in the assumption referring to the eighth paragraph of article 69-B of the Federal Tax Code
• If the taxed activities, the income, the value of the declared acts, as well as the tax withheld by the taxpayer, stated in the informative or provisional payment declarations, definitive withholdings or for the fiscal year, do not match the documents or databases submitted to the tax authorities

If the use of the digital seal certificate is temporarily restricted, taxpayers will have the opportunity to submit a request for clarification, with the intention of correcting the irregularities or clarifying the reasons that gave rise to this limitation. The tax authorities will have a period of 10 days to issue their resolution, which must be notified through the tax mailbox.

Source KPMG

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