This repeal will affect maquiladora or IMMEX structures that result in the sale by a nonresident of goods temporarily imported into Mexico under a program granted in accordance with the Decree for the Promotion of the Manufacturing, Maquiladora and Export Services Industry (IMMEX Program). Taxpayers with these structures should analyze their operations and implement any changes needed to comply with the VAT requirements.
Effective 8 July 2021, Mexico will repeal rule 5.2.5 of the General Rules of Foreign Trade, which exempts certain qualified purchases of temporarily imported goods from nonresidents (i.e., goods passing through Mexico to another country) from value-added tax (VAT) withholding.
Source EY
