0% TAX POLICY FOR GROUPS.
Mexico is committed to winning international meeting and event business, and demonstrates this through their generous VAT exemption program. This equates to a 15% discount on a broad range of meetings and conventions services.
DISCOUNTED DIRECT AND RELATED SERVICES:
- Food & Beverage by Hotel & Convention Center
- Airport, seaport and border transfers
- Transfers between hotel and Hosts meetings place
- AV Equipment
- Master of Ceremonies
With a typical small to medium sized planning scenario, one can see how the VAT exemption can remove a significant amount of cost to the international meetings industry, compounded by often attractive Peso to foreign currency exchange rates.
0% Tax Policy for International Groups & Conventions
The Mexican Government's new initiative to increase the amount of business tourism coming into the country has introduced a Zero tax, an amendment to the VAT law for international meetings, conventions, fairs and exhibitions. The amendment is that those who wish to organize an event in Mexico will be exempt from having to pay VAT.
Mexico is the first country in the world to introduce this initiative of Zero Tax, the latest in a line of initiatives between the Mexican Government and the Private Sector to improve business tourism. This initiative is set to make Mexico far more competitive in the international events market.
In order to get the tax exemption, the event has to be operated by a Mexican organizer, venue or hotel, and be certified by the Mexican Government. The organizers must prove that all the attendees at the event are international and the company hosting the event must be based abroad.
The exemption includes accommodation for the international attendees, transportation to and from the airport and the hotel, and any services that are provided by the hotel and venue.
Here below is the legal information and the way this new law apply. For further information please go to VISIT MEXICO's and click on the Toolkit: http://www.visitmexico.com
TAXES ON HOTEL SERVICES FOR INTERNATIONAL GROUPS, CONVENTIONS & CONGRESSES
Effective as of January 1st, 2004.
• ARTICLE 29 SECTION VII OF THE VAT TAX LAW; PUBLISHED IN THE D.O.F. DECEMBER 31ST,2003.
It is obligated to 0% taxes, the lending of hotel services and correlatives made by hotel enterprises for international tourists coming to the Country to participate exclusively in the congresses, conventions, expositions or fairs to be held in Mexico.
Food & Beverage services are included in theses hotel services when they are supplied in tourists packages or when they're part of the services programmed to have at the hotel.
• REVIEW ON MISCELLANOUS REGULATION PUBLISHED NOVEMBER 21ST, 2003.
5.6.6 By consent of the VAT Law, Section VIII Article 29, it is understood that a:
I. CONGRESS: and all professional meetings subject to the realization of a discussion and professional, cultural, athletic, religious, social, academic or governmental interchange towards any topic of interest.
II. CONVENTION: All meetings gremial or managerial whose objective is to deal with the commercial matters among the participants oriented towards a market, product or brand.
III. EXPOSITION: commercial or cultural event gathering members of a gremial or managerial sector, social or professional, organized with the purpose of introducing products or services.
IV. FAIR: display of products or services which concur in a specific area so as to commercialize and promote business.
V. EVENT ORGANIZER: the institution, association, organism or enterprise to which name the convention, congress, exposition or fair is effected upon, notwithstanding that such people be aided by organization lenders to handle the events.
VI. INCENTIVE TRIPS ARE NOT PART OF THIS REVIEW.
• REQUIREMENTS THAT MUST BE FULFILLED:
5.6.7 Lenders preponderant activity: Hotel or Motel Services.
I. TO REGISTER as an enterprise dedicated to exporting hotel services and correlatives presenting an application before the local administration of assistance to contributors with the following data and documents, may apply starting Nov 15th,2003.
a). COMPANY NAME:
b). TAX ID #
c). FISCAL ADDRESS of each of the establishments in which hotel services and correlatives are lent, exercising their right as an export enterprise.
• DOCUMENTATION THAT MUST BE KEPT:
Maintain application documents of hotel services and correlatives specifying:
a). Address Where the event will take place.
b). Duration of such events.
c). Keep written reservation made by organizers of the event with the data mentioned above on section a) and b).
When receipt of services supplied is issued to the