On March 15, 2023, the Supreme Court approved a jurisprudence establishing that civil compensation, which is a form of extinguishing reciprocal obligations between the creditor and the debtor, is not a means of payment of value-added tax (VAT) for purposes of its crediting and refund.
Therefore, even though the principal obligation is civilly extinguished, the offsets do not generate the right to credit VAT and, therefore will not give rise to a credit or refund until there is an established cash flow.
The jurisprudence will result in increased scrutiny of the taxpayers of this tax. This position will affect several operations, for example, the centralized treasury. In addition, the impact will have to be analyzed in different scenarios, such as the retroactivity of the jurisprudence, the use of compensation in the last five years of refunds, audits in process, possible tax assessments, ISR deductions for non-creditable VAT, and the effects on interest on loans paid through compensation, among others.
Santamarina + Steta's experts are at your disposal to explain the implications of this jurisprudence and advise you to avoid possible contingencies against the authority.