One of the main concerns of taxpayers who generate VAT balances in their favor is the time that the authority has to authorize or reject said refund.
This process, regulated by law, has certain rules that both individuals and corporations must know to ensure proper management of their tax rights.
How long does the SAT have to issue VAT refunds?
In accordance with article 22 of the Federal Tax Code (CFF), when a taxpayer requests the refund of a VAT balance in favor, the Tax Authority has a period of 40 business days to make such a refund, counted from the date on which the request was submitted. This period is important to maintain the expectation of when the refund will be received.
However, it is essential to keep in mind that this period may be disrupted. The interruption occurs if the Tax Authority issues a request additional information related to the refund request. The deadline is suspended from the moment the taxpayer is notified of this requirement and until the requested information is provided. If the taxpayer does not respond adequately or in a timely manner, the refund may be denied, generating a longer and more complicated process.
Time to request a refund and prescription of the balance in your favor
The right to request a refund of a VAT balance in favor is a right enshrined for taxpayers in Mexican law. According to article 22 of the CFF, both individuals and corporations can make this request. However, there is a time limit for the taxpayer to exercise this right: 5 years from the date on which you could have demanded the refund.
This period is of utmost importance, since once it has elapsed, the credit balance expires and the taxpayer loses the right to claim a refund. Therefore, it is advisable that individuals and companies maintain strict control over their credit balances and the dates on which they can request a refund.
Documentation required for VAT refund
It is essential that taxpayers submit their VAT refund application in a complete manner and with all the documentation required by the authority. Some of the documents that are generally requested include:
- Tax returns in which the balance in favor has been generated.
- Bank statement where the interbank CLABE is reflected to make the refund deposit.
- Electronic invoices (CFDI) that support the operations that gave rise to the credit balance.
In some cases, depending on the taxpayer's activity and the amount of the refund requested, the SAT may request additional information or conduct a more detailed review, which lengthens the process.
Final considerations
The refund of VAT balances in favor is a right of taxpayers, but it requires a meticulous process and compliance with certain requirements. Knowing the timelines, responding in a timely manner to information requests, and having adequate control of the deadlines is key to guaranteeing an efficient refund experience. Although the law establishes a 40-day period for the refund, the reality is that this time can be extended if additional information requests by the tax authority are not met. Therefore, being well informed and prepared for this process is essential to avoid complications.
LEARN ABOUT OUR WORK PAPERS FOR REQUESTING VAT BALANCES IN YOUR FAVOR.
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