V.A.T. Exemptions
What is the vat exemption?
Enacted in 2004, the exemption on Value Added Tax (commonly abbreviated as V.A.T.) is a tax reform that eliminates sales tax on congresses, conventions, fairs and expos held by foreign companies in Mexico.
What does the exemption cover ?
Lodging
Airport/seaport/border transfers
Transfers between hotels and meeting places
Related event services such as set-up, registration, masters of ceremonies, translators, hosts, audiovisual equipment, decoration, security and cleaning
Food and beverages served by the hotel and as part of the event
All related services contracted up to two nights before and two nights after the event
What doesn’t the exemption cover?
Incentive travel
Food and beverages served at convention centers
How can my event qualify for the exemption?
It must be coordinated by a Mexican event organizer (PCO), hotel or other venue certified by the Mexican government.
It must be paid through a credit agency (bank, credit card company, etc.) headquartered abroad.
Event organizers must provide contract of service as well as migratory documents proving that all attendees reside outside Mexico.
