Based on the First Resolution of Modifications to the General Rules of Foreign Trade for 2016, published on May 9, 2016, a new comprehensive certification scheme was established, consisting of a permanent compliance program for companies that will be certified in new modalities, including VAT Certification and Authorized Economic Operator.
Under this new comprehensive certification scheme, obligations that used to be of instant or temporary compliance, have become permanent. Even though the VAT certification renewal process has been simplified, compliance with the obligations derived from the VAT certification may be reviewed at any time and, in case of non-compliance, a cancellation procedure may be initiated.
The government authorities that review compliance with a VAT certification have a stricter policy and have begun to carry out verification visits. An example of this policy change is that previously a person with a general power of attorney for acts of administration had sufficient corporate authority to be the legal representative for purposes of VAT certification. Today, however, such person must have a general power of attorney for acts of ownership, otherwise the VAT certification may be canceled.
Companies should pay particular attention when complying with these obligations, not limiting themselves to filing the initial balances and exhibit 31 reports. Rather, companies should keep in mind that such reports must be filed with information that is correct and consistent with their inventory control system detailed in exhibit 24. In our experience, Mexican officials have been open to receiving corrections of the initial balances and reports of exhibit 31. It is important to mention that even though these reports have been registered as valid in the Control of Credits and Guarantees System, this only means that the information was complete on the form when submitted, but does not imply a confirmation of the specific content of the filing.