(MEXICO) Companies that refund taxes to foreign tourists are reeling

The two co-workers authorized to perform this function in Mexico depend on the arrival of visitors from other countries.

The paralysis of tourism in the country, as a result of the contingency and the closure of borders by the pandemic, endangers the only two companies dedicated to the “Tax Refund Program for Foreign Tourists”; so far only four destinations have resumed tourism activities, including Cancun and Playa del Carmen.

Photo: Mils

TaxFree and Moneyback, federal government concessionaires authorized by the Tax Administration Service (SAT), generate their income from applications made by international tourists, who are refunded about 78 percent of Value Added Tax (VAT) on their purchases in Mexico and the concessionaire keeps the rest, so without tourists there are no applications and without these, they have no tickets.

“The support we require is not monetary, but of projection and promotion, we are a tool, a plus for the tourist to come, […] the impact comes from the fact that the United States has the red ribbon not to travel to Mexico because of the pandemic, we depend on the reactivation and reopening of the borders,” said Mercedes Mena, general manager of TaxFree.

As of June 15, tourism activities resumed in Los Cabos, Guadalajara, Cancun and Playa del Carmen. So far, this company has received 10 new applications and is waiting for the reactivation of cruise ships and international flights.

In the case of Moneyback, the company did not respond when contacted.

Author: Agencia Reforma, Sipse