Recovering VAT in Mexico: From Import to Export (Complete Case Study)

Introduction

For international businesses operating in Mexico—especially those importing raw materials, processing locally, and exporting to the U.S.—recovering Value Added Tax (VAT) can be a decisive factor in cash flow management. This article provides a step-by-step practical example, explains how to file through the FED (Formato Electrónico de Devoluciones), clarifies the 40-working-day rule, and details how SAT requirements may pause this legal timeframe.

---

1. From Import to Export: How VAT Works

• Import stage (China → Mexico): VAT is paid on the customs value (valor en aduana).
• Local processing: VAT is also charged on domestic expenses such as logistics, rent, or utilities.
• Export stage (Mexico → U.S.): Exports are subject to 0% VAT (LIVA art. 2-A, fracc. IV; art. 29), so no VAT is charged to the foreign customer.
• Result: The company accumulates VAT credits (saldo a favor) and can request a refund from the SAT.

---

2. Request Mechanism: FED – Formato Electrónico de Devoluciones

The FED is the official electronic system to request VAT refunds. All taxpayers—domestic and international—must file through this portal.

How it works:

1. Access the SAT portal with RFC + password or e-firma.
2. Select “Devoluciones y compensaciones” → FED.
3. Provide information: tax type (IVA), period, refund amount, and bank CLABE (must match the RFC).
4. Upload supporting documentation in a .zip file (each file max 4 MB).
5. Submit and obtain the official acknowledgment receipt.

Supporting documents may include:

• Import pedimentos showing VAT effectively paid.
• CFDIs with export complements.
• DIOT (Declaración Informativa de Operaciones con Terceros) filed for the period.
• Bank statements showing foreign transfers.
• Supplier invoices with VAT.

Legal basis: RMF 2025, rule 2.3.4 and Anexo 1-A (fichas 8/CFF, 9/CFF, 10/CFF as applicable).

---

3. Practical Example

Company profile:

• Imports raw material from China: VAT at customs = $160,000 MXN.
• Domestic services: $100,000 + $16,000 VAT (transport), $50,000 + $8,000 VAT (utilities).
• Total VAT credit = $184,000 MXN.
• Exports finished goods to the U.S. at 0% VAT.

Monthly VAT return: Shows a saldo a favor of $184,000 MXN.

Refund request via FED:

1. File VAT return.
2. Log into FED and complete refund application.
3. Attach documents (pedimentos, CFDIs, DIOT, bank statement).
4. Submit and keep the receipt.

---

4. SAT Requirements and the 40-Day Rule

• General rule: SAT must process refunds within 40 working days (CFF art. 22).
• Suspension: If SAT issues a requerimiento (request for more information), the 40-day clock is paused starting the next working day.
• Once the taxpayer responds, the countdown resumes.
• SAT may issue:
  • First requirement: within 20 days of the request.
  • Second requirement: taxpayer has 10 days to respond.
• If SAT delays payment after the legal timeframe, interest is due (CFF art. 22-A).

Typical requirements include:

• Pedimentos validated in VUCEM.
• CFDIs of exportation with XML and PDF.
• Bank confirmations of foreign payments.

---

5. Legal References

• VAT Law (LIVA):
  • Art. 2-A, fracc. IV → 0% VAT on exports.
  • Art. 29 → Defines export of goods/services.
  • Art. 4 → VAT credit rules, including imports.
• Código Fiscal de la Federación (CFF):
  • Art. 22 → Refund rights and 40-day deadline.
  • Art. 22-A → Interest payable on late refunds.
• RMF 2025:
  • Rule 2.3.4 and Anexo 1-A → FED procedure and required annexes.
• DIOT requirement: Must be filed before requesting refunds (linked to rule 2.3.4).

---

6. Summary Table

Aspect	Details
Refund Mechanism	FED (Formato Electrónico de Devoluciones) via SAT portal
Documentation Required	Pedimentos, CFDIs export, DIOT, CLABE bank statement, invoices
Deadline for Payment	40 working days (CFF art. 22), paused during requirements
Legal Basis	LIVA arts. 2-A, 4, 29; CFF arts. 22, 22-A; RMF 2025 rule 2.3.4, Anexo 1-A

---

Final Thoughts

For exporters in Mexico, VAT refunds can significantly boost cash flow. The process is entirely digital through the SAT portal. While the law guarantees a 40-day resolution, in practice the SAT frequently issues requirements that pause the clock. Properly organized records—pedimentos, CFDIs, DIOT, and bank evidence—are essential for a smooth and timely refund.