VAT Notification
Insights
VAT Notification
PDF

To our Clients,

The Official Federal Gazzette published, on December 9, 2019, the decree through which several tax provisions were amended, added, and repealed.

Stands out – within the Value Added Tax Law (LIVA) –Article 1o.-A to which section IV, transcribed below, was added:

Article 1o.-A.- Taxpayers who are in any of the following cases are obligated to carry out the withholding of the tax transferred to them:

… IV. Legal persons or natural persons with business activities, who receive services through which personnel is made available to the contracting party or a related part thereof to carry out their duties in the contractor's facilities or a related part thereof, or even outside of these, whether or not they are under the direction, supervision, coordination, or dependence of the contracting party, regardless of the denomination given to the contractual obligation. In this case, the withholding will be 6% of the value of the consideration effectively paid.

For this reason, we make it known that the services that J.A. del Río provides to its clients do not fall within the assumption of this withholding since:


a) J.A. Del Río's activities consist of providing independent professional services in tax matters and consulting.

b) Our fees correspond to specialized projects carried out, supervised, and directed by J.A. Del Río.

c) Our employees are hired by and work for J.A. Del Río and not for our clients.

If any of our services require our staff be made available to our clients, and in their facilities, the Partner in charge of your account will duly inform you since, in those cases, the possibility of being subject to the 6% withholding referred to in the article above must be considered.

Do not hesitate to contact us should you have any questions or comments in this regard.

Sincerely,
J.A. Del Río, S.A. de C.V.

Newsletter
Suscribe to our

Newsletter

Invalid email.
This email account is already registered.
Es necesario aceptar el aviso de privacidad.
Thanks for subscribing.
Related Posts
SHARE THIS ARTICLE