On February 13, 2015, a jurisprudence was issued whereby the Plenary Session for Administrative Matters for the First Circuit ruled that tax authorities are bound to pay interest to certified maquila companies for failing to refund VAT within the term of five business days following the filing of the application for balance in favor, provided all necessary requirements are fulfilled upon filing said refund application. The foregoing pursuant to the Decree for the Promotion of the Manufacturing, Maquila and Export Services Industry, which states that when merchandise is exported, they shall be entitled to the refund of the value added tax when they obtain a balance in favor in their tax returns, within a term that shall not exceed five business days, provided the provisions established by SAT under general rules are complied with. The Federal Tax Code establishes the obligation upon the authority to pay interest on the day after the term of forty days to return the balance in favor expires, however, considering maquila companies have a shorter term, the authority shall consider the payment of interest upon expiration of the 5 business days. The jurisprudence shall be of great use to Maquila companies, even for those certified as to VAT and Special Tax on Manufacturing and Services (IEPS) considering the terms established under the Miscellaneous Resolution pursuant to modalities A, AA and AAA, where the term is ten, fifteen and twenty days respectively for the delivery of the refund. However, under this jurisprudence, Hacienda may be required to pay interest after the five business days following expiry. Please contact us if you have any doubt or need clarification in this regard.