Tax Implications Of Recent SAT Invitations On Subcontracting And REPSE

Recently, the Tax Administration Service (“SAT”) has implemented a mass communication strategy through the sending by email of invitation letters or communications related to alleged transactions carried out by taxpayers with specialized service providers whose Specialized Services or Specialized Works Provider Registry (“REPSE”) has been canceled.

These SAT invitation letters or communications aim to promote voluntary self-correction by taxpayers pursuant to Articles 33, section IV, subsections b) and c), and 63 of the Federal Tax Code (“FTC”), emphasizing that only specialized service providers with active registration in REPSE may issue Digital Tax Receipts via Internet (“CFDI”) that are tax-deductible for Income Tax (“IT”) purposes and creditable for Value Added Tax (“VAT”) purposes.