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Business consulting services
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
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Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
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Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
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Cybersecurity
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
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Forensic and investigation services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
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Mergers and acquisitions
Globalisation and company growth ambitions are driving an increase in M&A activity worldwide. We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer- term strategic goals.
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Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery
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Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
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Valuations
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
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IFRS
The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements. At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
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Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
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Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.
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Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
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Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
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Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
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Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
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Innovation and investment incentives
Dynamic businesses must continually innovate to maintain competitiveness, evolve and grow. Valuable tax reliefs are available to support innovative activities, irrespective of your tax profile.
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Private client services
Our solutions include dealing with emigration and tax mitigation on the income and capital growth of overseas assets.
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Transfer pricing
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
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Tax policy
Tax policies are constantly evolving and there are a number of complex changes on the horizon that could significantly affect your business.
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Outsourcing Changes to the Outsourcing legislation, specifically when offshoringSignificant changes to the dynamic of the financial services sector in recent years have shifted the paradigms in how we work. The increased digitisation of the workforce, changes in business models, globalisation, and remote working capabilities have led to a new approach to the delivery of services.
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Asset management Inflation and tax planningThe recent onset of rapid inflation is an unwelcome development that is having a widespread impact on US businesses and tax planning.
Indirect tax snapshot
Please click on each section to expand further:
Value Added Tax (VAT) is the main type of indirect taxation in Mexico.
VAT applies to most transactions involving goods or services taking place within the Mexican territory. Such transactions include the importation of goods and services from abroad. VAT consists in a 16% tax rate applied to each transaction.
The VAT mechanism involves VAT collected, which is charged to the buyer when a sale is made; and VAT outlay, which is paid to the seller when a purchase is made. When the difference is positive (VAT collected is greater than VAT outlays), it’s forwarded to the tax authorities with the monthly VAT return. When the difference is negative (VAT outlays are greater than VAT collected), a refund or tax offset claim may be filed on a monthly basis.
VAT may be an easy tax to work with, but on certain circumstances it may create substantial cash flow consequences. Additionally, proper precautions need to be taken since VAT refunds may not be granted to foreign corporations. A proper VAT plan may be required to avoid a negative impact on VAT.
The following acts or activities are subject to VAT, within Mexican territory:
- supplies of goods
- services provided
- leasing of goods
- importation of goods or services.
No, all the taxpayers that carry on the activities mentioned before should register; however, in case of foreign residents only in some cases may be necessary to be registered.
Not applicable in Mexico.
Depending on the service provided it could be classified as a digital service or a importation of services (including technology transference) which must include VAT in the consideration paid for such services.
The Mexican Federal Tax Code establishes the obligation to register in the ‘Federal Taxpayer Registry’ for all legal entities and for individuals who must file tax returns or issue electronic tax invoices, for the acts or activities they carry out, for the income they obtain, or in case they opened a financial account.
A non-established corporation with no permanent establishment in Mexico needs a fiscal representative in order to register.
Most businesses are required to submit VAT on a monthly basis, no later than the 17th day of the month following the month to which the payment corresponds.
A default surcharge penalty may be imposed by the tax authority if VAT returns are not submitted on time, or the related tax is not paid by the due date.
For non-compliance, a fine which ranges from 55% to 75% of the tax omitted.
From $1,400.00 to $17,370.00 Mexican pesos, in the case of returns, for each obligation not declared.
Additionally, taxpayers must submit on a monthly basis, an informative tax return of transactions with third parties, also known as ‘DIOT’.
Yes. A range of penalties can be imposed where businesses do not comply with the VAT rules.
For mathematical mistake, a fine which ranges from 20% to 25% of the tax omitted.
In case of failure to submit the DIOT, a fine which ranges from $10,370 to $20,740 Mexican pesos.
No, because transactions that do not take place in Mexican territory are not subject to the VAT in Mexico.
A VAT invoice must show:
- an invoice number which is unique and sequential
- the seller’s registration number and tax regimen
- the invoice date
- the invoice place of expedition
- the customer registration number
- a description (including quantity/measure unit) sufficient to identify the goods or services supplied to the customer
- total amount of the good or the service
- total amount of VAT charged expressed
- if total payment is completed in one or more payments.
No, due that the filing of the monthly VAT returns, as well as the invoices (CFDI) must be made through electronic means. Nevertheless, the only additional requirement is the electronic filing of the informative tax return of transactions with third parties, also known as (DIOT).
For further information on indirect tax in Mexico please contact:
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Daniel Santiago |
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