International tourists arriving in Mexico by plane or cruise ship will be able to make tax-free purchases starting July 1, 2006, thanks to a Tourism Ministry-backed law recently passed by Mexico’s Congress with overwhelming support.
Spearheaded by Rodolfo Elizondo Torres, Mexico’s Secretary of Tourism, the law will grant international visitors a full refund of the 15 percent sales tax added to purchases if the buyer follows a few simple steps.
In order for international visitors to be reimbursed for purchases, they must adhere to the following criteria:
1. The purchaser must obtain an official receipt (factura) with the tax number (Registro Federal de Causantes) of the establishment on it to present for reimbursement.
2. Only receipts worth a total of at least 1,200 Mexican pesos (approximately US$110 at current exchange rates) per store can be presented for reimbursement.
3. The goods purchased must leave Mexico with the person who purchased them, just as other duty-free goods do.
How the sales tax will be reimbursed, whether a commission will be charged on the reimbursement and whether the benefit will also be extended to tourists entering Mexico by land have yet to be determined.
“International visitors to many countries in the world, including Canada, China, the United States and European Union countries, already grant this benefit, and Mexico must follow the trend,” the text of the law says, adding that the measure is expected to help Mexico attract more international visitors and encourage them to spend more.