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Last updateFri, 03 May 2024 10am

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Stores resist VAT program that allows tourists to reclaim the tax

Very few stores have signed up to a scheme allowing foreign visitors to reclaim value-added tax on their purchases in Mexico.

The tax measure was designed to incentivize travel to the country and is in operation in major Jalisco tourist destinations like Guadalajara and Puerto Vallarta. While joining the scheme is entirely free for businesses, few have shown interest and many complain that they have not even heard of the scheme.

“We have not had anyone tell us about this program,” said Alejandro Salas, a delegate at Guadalajara’s National Chamber of Commerce. “We are open for the tax authority to come to us and promote it, but no one has distributed the information.”

Guadalajara Business Association President Ana Maria Garcia said that some businesses were afraid they would be charged for providing the service and were therefore reluctant to sign up.

To apply for a VAT return, foreign tourists need to present their return air ticket, along with their receipts, which must be valued between 1,200 pesos and 3,000 pesos from a store that is signed up to the program.

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