In any type of transaction, it is usual for two parties to enter into a debtor/creditor relationship and use the legal concept of compensation as a method of payment for their respective debts, making it easy to comply with their obligations without the need for the movement of money. However, with the recent law issued by the Mexican Supreme Court of Justice (SCJN, by its acronym in Spanish), compensationof debtsmay come at a cost for companies in terms of value added tax (VAT).
Source Mondaq
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