On 15 March 2023, the Second Chamber of the Supreme Court of Justice of the Nation (SCJN) issued a binding opinion in the form of jurisprudence, in which it establishes that civil offsetting is not a mean of payment of VAT and thus, it cannot allow the crediting of VAT such amounts or the refund of a VAT favorable balance. In this context, the SCJN considers that the VAT crediting should not be allowed upon offsetting of mutual receivables between taxpayers, and the VAT related to such offsetting operations is deemed to be not effectively paid or disbursed.
Source: bakermckenzie.com
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