June 2024

Alternatives vs. Interpretation in Insurance Matters on VAT Crediting

Legal Industry Reviews México
Mario Barrera
Tax attorney Mario Barrera wrote an article for Legal Industry Reviews (LIR) México about the alternatives to the interpretation of insurance matters regarding value-added tax (VAT) crediting. Mr. Barrera addresses how insurance companies in Mexico, which traditionally credited the VAT transferred by their suppliers when acquiring goods or services necessary for their activity, now face an interpretation by the Tax Administration Service (SAT) that denies this possibility. The SAT considers that expenditures to compensate for damages are not part of the production chain, which has generated tax credits and millionaire losses for insurers. In the absence of a judicial resolution, Mr. Barrera suggests exploring alternatives such as investment arbitration.

READ: Alternatives vs. Interpretation in Insurance Matters on VAT Crediting (Article begins on page 48)

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