With the addition of the new article 4-A of the LIVA, for the year 2022, the acts or activities "Not subject to taxes" are incorporated, which have an impact on the determination of VAT, since the determination will be made in accordance with the mechanics established by Article 5 LIVA, which was also reformed as 2022, that is, the VAT of “non-object” acts will not be creditable and a proportion of VAT will have to be determined based on “non-object” acts taxes”, it should be clarified that this mechanism in previous years only applied to acts or activities exempt from taxes and the law does not include acts not subject to taxes.
Article 4 LIVA
It is understood by acts or activities not subject to the tax, those that the taxpayer does not carry out in national territory in accordance with the provisions of articles 10, 16 and 21 this law.
As well as those different from those established in article 1o. of this Law carried out in national territory, that is, different from the sale of goods, the provision of services, the granting of temporary use or enjoyment of goods, and the importation of goods and services.
Therefore, as of 2022 there will be certain cases in which taxpayers will see their proportion of creditable VAT reduced, such as:
Services provided entirely abroad.
The sale of tangible goods abroad that were not exported from national territory, and
The leasing of goods that are delivered in Mexico and used abroad, among other assumptions.
Derived from this change, article 5 was also reformed of the LIVA, to point out that:
VAT on expenditures other than investments used exclusively to carry out activities not subject to VAT is not creditable.
If the taxpayer indistinctly uses goods other than investments, to carry out taxable activities and not subject to VAT, the crediting will proceed in the proportion in which the value of the activities for which the tax must be paid or to which the VAT is applied. rate of 0%, represents the total value of the activities including those not subject to VAT, and
In the case of investments, the tax that has been transferred to the taxpayer in their acquisition is credited considering the habitual destination that said investments have to carry out the activities for which VAT is due or not payable, including those not subject to, or to those that the rate 0% be applied to them, and the appropriate adjustment must be made when the aforementioned destination is altered.
We inform you that this information provides general information based on the current laws and regulations, and in case of an individual report, be sure to receive advice from an expert before handling it.
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