RULE 7.1.3: REQUIREMENTS TO BE ACCREDITED BY THOSE INTERESTED IN OBTAINING THE VAT (IVA) AND IEPS MODALITY, RUBRICS AA AND AAA

For the purposes of articles 28-A, first paragraph (LIVA: Art. 28A) of the Value Added Tax Law (Ley del Impuesto al Valor Agregado) and 15-A, first paragraph of the Law on Special Tax on Production and Services (Ley del Impuesto Especial sobre Producción y Servicios), interested parties who intend to obtain the Registry in the Business Certification Scheme in the Value-Added Tax (Impuesto al Valor Agregado) and Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) modality, rubrics AA or AAA, in addition to what is established in the rules 7.1.1. (RGCE 2020: Regla 7.1.1) and 7.1.2. (RGCE 2020: Regla 7.1.2), as appropriate, must comply with the following:

I. VAT (IVA) and IEPS modality, rubric AA:

a) Having carried out during the last 4 years or more, operations under the regime for which they request certification or that, on average, during the last 12 months had more than 1,000 workers registered with the Mexican Social Security Institute (Instituto Mexicano del Seguro Social) and / or subcontracted in the terms and conditions established by articles 15-A to 15-D of the Federal Labor Law (Ley Federal del Trabajo) or that its machinery and equipment is greater than $50,000,000.00 (fifty million pesos 00/100 mn).

b) That they have not been notified of any tax credit by the Service Tax Administration (Servicio de Administración Tributaria) in the 12 months prior to the date of presentation of the request or, where appropriate, they prove that they are under the protection of the procedure provided in the second paragraph of this rule or, where appropriate, have made the payment thereof.

c) Not having a resolution of inadmissibility of the Value-Added Tax (Impuesto al Valor Agregado) refunds, whose amount represents more than 20% of the total authorized refunds and / or the resulting denied amount exceeds $5,000,000.00, (five million pesos 00/100 mn) individually or as a whole, during the last 6 months from the date of submission of the request.

II. VAT (IVA) and IEPS modality, rubric AAA:

a) Have carried out during the last 7 years or more, operations under the regime for which they request certification or that, on average, during the last 12 months had more than 2,500 workers registered with the Mexican Social Security Institute (Instituto Mexicano del Seguro Social) and / or subcontracted under the terms and conditions established in articles 15-A to 15-D of the Federal Labor Law (Ley Federal del Trabajo) or that its machinery and equipment is greater than $100,000,000.00 (one hundred million pesos 00/100 mn).

b) That they have not been notified of any tax credit by the Service Tax Administration (Servicio de Administración Tributaria) in the last 24 months prior to the filing date of the request or they prove that they are covered by the procedure provided in the second paragraph of this rule or, in their case, have made the payment.

c) Not having a resolution of inadmissibility of the Value-Added Tax (Impuesto al Valor Agregado) refunds, the amount of which represents more than 20% of the total authorized refunds and / or the resulting denied amount exceeds $5,000,000.00 (five million pesos 00/100 mn), individually or as a whole, during the last 6 months from the date of submission of the request.

Those interested in obtaining the Value-Added Tax (Impuesto al Valor Agregado) and Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) modality, rubrics AA and AAA that have tax credits, may obtain the Registry in the Business Certification Scheme in the Value-Added Tax (Impuesto al Valor Agregado) and Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) modality, in said rubrics, provided that the credits are found guaranteed in terms of article 141 (CFF: Art. 141) of the Federal Fiscal Code (Código Fiscal de la Federación), except in those cases in which a means of defense has been presented in which it is not mandatory to guarantee or request authorization of the deferred payment in installments of the omitted contributions and their accessories in accordance with articles 66 (CFF: Art. 66) and 66-A (CFF: Art. 66A) of the Federal Fiscal Code (Código Fiscal de la Federación), without said term exceeding 12 months from the authorization granted by the Service Tax Administration (Servicio de Administración Tributaria) or the payment in installments has been authorized.

In those cases in which the "Request for Registry in the Business Certification Scheme" of Annex 1 (RGCE 2020: Anexo 1), is made in rubrics AA or AAA, and that from the information known by the authority it is determined that it does not meet all the requirements for the requested certification, the General Administration of Foreign Trade Audit (Administración General de Auditoría de Comercio Exterior), based on the information obtained, will grant the corresponding rubric.

Interested parties who have been granted the Registry in the Business Certification Scheme in the Value-Added Tax (Impuesto al Valor Agregado) and Special Tax on Production and Services (Impuesto Especial sobre Producción y Servicios) modality, rubrics A or AA, may request the change to other rubrics, provided that they comply with the obligations indicated in rule 7.2.1. (RGCE 2020: Regla 7.2.1), of the rubric they have and submit their request, complying with the additional requirements of the rubric requested.

In the event that, derived from the initial inspection or prior request of the competent authority, the taxpayer does not prove that it has the necessary facilities to carry out its production or service processes, a new request may not be made during the following 6 months, counted from the issuance of the respective resolution.

Value Added Tax Law (Ley del IVA) 28-A (LIVA: Art. 28A), Law on Special Tax on Production and Services (Ley del IEPS) 15-A, Federal Labor Law (LFT) 15-A, 15-B, 15-C, 15-D, Federal Fiscal Code (CFF) 66 (CFF: Art. 66), 66-A (CFF: Art. 66A), 69-VI (CFF: Art. 69), 141 (CFF: Art. 141), General Rules of Foreign Trade (RGCE) 1.2.1. (RGCE 2020: Regla 1.2.1), 7.1.1. (RGCE 2020: Regla 7.1.1), 7.1.2. (RGCE 2020: Regla 7.1.2), 7.1.6. (RGCE 2020: Regla 7.1.6), 7.2.1. (RGCE 2020: Regla 7.2.1), Annex 1 (RGCE 2020: Anexo 1)