Cut validates VAT on pet food



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The plenary of the first chamber of the Supreme Court of Justice of the Nation (SCJN) stated, by a majority, that Constitutional application of VAT on the sale of processed food for dogs, cats and other pets.

During his session on Wednesday, the arbitrator also clarified that the zero rate of Value added tax (VAT) is not applicable to any food intended for animals in general, pets or not, soIn both cases, your sale must be taxed at a rate of 16%.

By four votes for and one against, the magistrates denied the chain Wal-Mart of Mexico the amparo against the reform that removed the zero VAT rate for this type of food.

In February 2017, the House rejected a Minister's proposal Norma Piña, propose to grant amparo because there is an unfair treatment with respect to Larger animal feed such as horses or field work, that according to Wal-Mart they would have kept the zero rate.

But the majority said today that it was wrong that the VAT law Consider the zero rate for equines and other animals larger than those usually kept as pets.

If you have gained protection, Wal-Mart of Mexico would not have been entitled to the refund of VAT the sale of these products has been billed since 2014 because the tax is paid by consumers.

However, the self-service store could have applied the zero rate, which allowed it to credit VAT in its favor, while reducing the retail price of this type of pet food.

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