Mexico Value-Added Tax (VAT) Change Effective January 1, 2022
To Our Customers,
The Mexican government recently approved a change to its Value-Added Tax (VAT) law that will affect customers with southbound rail shipments from the United States to Mexico. Beginning January 1, 2022, Mexican railroads have informed Loup that they will charge a 16% VAT on the Mexican portion of all shipments originating outside of Mexico. This change will be effective January 1, 2022, per the Mexican government’s latest communication.
What the VAT Change Means for Loup Customers
The revised VAT law only affects customers with southbound rail shipments from the United States to Mexico. Those who are impacted will see an additional VAT charge added for the Mexico portion of their shipment. We are currently assessing the cost implications for the Mexican portion of the southbound shipments.
If you have any questions, please contact your Loup sales representative.