Effects of the repeal of section IV of the article 1 - A of the VAT Law.
Due to the reform of the Value Added Tax Law (VAT), the obligation of section IV of article 1-A contained in said legal system, consisting of withholding VAT from those who make staff available to their clients in the provision of their services, It ceases to be valid as of 1 August 2021, so it is relevant to take into account the following considerations:
- The accrual of VAT (at the provider) and the obligation to retain (the client's), they are triggered at the moment in which the consideration is considered effectively collected by said supplier; Thus, payments made from 1 of August, should not consider any retention effect, even when they originate from invoices issued prior to the indicated date.
- In that order of ideas, invoices pending payment to 1 August 2021 previously issued and, consequently with the withholding in force until 31 of July, they will have to be canceled and replaced by documents that no longer contemplate said retention.
- If the payment they make to their suppliers as of 1 August has withholding effects, when the provision that gave rise to it was repealed, the authority could consider as non-creditable the part of the VAT that was not paid to the supplier, precisely for having withheld that amount when it was no longer appropriate and, indeed, having to consider as an undue payment the withholding made on disbursements made from the date of entry into force of the reform.
In the case of the supplier, the authority could consider the withholding non-creditable since section IV of the aforementioned ordinance is no longer in force, that gave rise to it.
We suggest that the supplier accounts pending payment to date be reviewed so that, of having balances pending payment at 31 of July, In August, the service is requested to be re-invoiced without VAT withholding., and the corresponding payment can be made.
Deductibility and accreditation requirements in Specialized Services.
On the other hand, based on the same decree, which also include changes to the Federal Labor Law (LFT), as well as the Income Tax law (LISR) and the Fiscal Code of the Federation (CFF), in case there are suppliers that provide specialized services in the terms of the articles 13, 14 Y 15 of the reformed LFT, as surveillance or cleaning, and “key” executive, We remind you of the requirements that you must meet in order to deduct the expense for ISR and credit the corresponding VAT, in payments made after the entry into force of these provisions:
- When the payment of the consideration is made:
- Verify that the provider is registered with the STPS as a provider of specialized services, for which we suggest requesting a copy of the acceptance of the aforementioned registration.
- While these are not express requirements, we consider that it would be worthwhile for the contract to contain the approximate number of workers, as well as the registration folio discussed in the previous point.
- Obtain from the service provider, for SRI and VAT purposes:
- Copy of the CFDI of payroll of the workers involved in the service (ISR).
- Copy of the payment receipt issued by the banking institution for the declaration of full income tax withholdings from workers (ISR).
- Copy of the payment of the worker-employer fees to the IMSS and INFONAVIT of said workers (ISR).
- Copy of the VAT declaration and acknowledgment of receipt of payment for the period in which the consideration was paid to your supplier. This information must be obtained no later than the last day of the month following the one in which the client has made the payment of the consideration and the corresponding VAT.. In case of not obtaining the information in time, the precept states that you must submit a supplementary declaration eliminating the VAT credit corresponding to said supplier (VAT).
The deduction requirements for ISR do not have an established term for compliance in the particular standard, except for the requirement of verification of the registration before the STPS; for the rest of the requirements, we could stick to the general rule, whose term is established in section XVIII of article 27 of the Law of matter, that is to say, the last day of the fiscal year in which the deduction is claimed, Nevertheless, Our suggestion is that they are fulfilled in the month following the one in which the service has been received..
Possible extension of the tax regulation.
By last, We do not want to stop emphasizing that there is a high probability that the entry into force of the regulation on ISR and VAT be extended, either to September 1 next, as proposed by the Parliamentary Fraction of the Morena Party and the Federal Executive; O well, as of January 1, 2022, as suggested by the Private Initiative and other Parliamentary Fractions; This circumstance will be resolved in the special period of sessions that will take place at the end of this month., Where will the decision of the Congress of the Union emanate from?. As soon as it is defined, We will let you know so that you can take the pertinent measures to comply with the provisions in question., for now, the established date is 1 of August.
We are at your service.