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Arturo QuinteroOct 14, 2025 4:48:57 PM7 min read

VAT and IEPS Certification (CIVA): Strategic Guidance from the Experts

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by Prodensa's Fiscal & Trade Compliance Team

Arturo Quintero

Finance & Tax Director

María Elena Sierra

VP TRADE COMPLIANCE

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In Mexico’s export manufacturing ecosystem, credibility and compliance are strategic assets.

For companies operating under the IMMEX program, one certification stands out as a key to operational efficiency and trust: the VAT and IEPS Certification (CIVA).

CIVA allows international manufacturers to defer tax payments, strengthen cash flow, and demonstrate fiscal integrity to authorities and business partners.

At Prodensa, we combine decades of advisory experience with the insight of former officials, guiding companies to obtain, maintain, and recover certification with precision and confidence.

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What is VAT & IEPS Certification (CIVA)?

The Certificación en Materia de IVA e IEPS (CIVA) is a special authorization granted by Mexico’s Tax Administration Service (SAT) within the Integral Certification Scheme.

It is designed for companies that import materials or components under an IMMEX authorization for temporary manufacturing, assembly, or transformation before re-exporting finished products.

Read more about the VAT recovery process for manufacturers in this blog.

Legal Framework

Value Added Tax Law (Article 28-A)
Special Tax on Production and Services Law (Article 15-A)
General Foreign Trade Rules (7.1.1 and 7.1.2)

Read more about the IMMEX Framework in this guide.

CIVA certification allows qualified companies to avoid paying VAT or IEPS upfront when importing goods temporarily, as long as these are used in export production.

This transforms tax compliance from a cost burden into a cash flow optimization mechanism for global manufacturers.

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Key Benefits Beyond Tax Savings

Beyond immediate fiscal relief, certified companies gain operational and strategic advantages, including:

The ability to import sensitive goods with special authorization.
Streamlined procedures for converting temporary imports into definitive imports.
Facilitated customs clearance and reduced administrative friction.
Enhanced credibility before authorities, clients, and suppliers.

For many of Mexico’s largest automotive, electronics, and aerospace exporters, maintaining CIVA is a mark of excellence in fiscal discipline.

How Prodensa Recovered $900 Million Pesos in VAT with a Strategic Reconstruction of the Process

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CIVA Certification Levels: A, AA, and AAA

SAT recognizes three levels of certification — each with distinct requirements and validity periods:

Level	Duration	Main Requirements
A	1 year	Basic level: up to date with SAT, at least 10 registered IMSS employees, compliance with fiscal obligations, and proof of investment in Mexico.
AA	2 years	Minimum 4 years operating under IMMEX, or over 1,000 employees, or investment exceeding MXN 50 million in machinery and equipment.
AAA	3 years	At least 7 years of IMMEX experience, over 5,500 employees, or machinery investment above MXN 100 million.

Each level increases both the duration of validity and the trust granted by authorities, reducing administrative renewals and demonstrating higher operational maturity.

FREQUENTLY ASKED QUESTIONS

CIVA FAQs

The most common questions for our experts:

What is the VAT and IEPS Certification (CIVA)? The Certificación en Materia de IVA e IEPS (CIVA) is a special authorization granted by Mexico’s Tax Administration Service (SAT) to IMMEX-registered companies. It allows them to temporarily import goods without paying VAT or IEPS upfront, as long as those goods are used in export manufacturing.

Who can apply for CIVA certification? Companies operating under the IMMEX program that import materials or components for transformation, assembly, or repair and later re-export finished goods are eligible — provided they meet strict fiscal, labor, and operational criteria set by SAT.

What are the main benefits of obtaining CIVA?

Immediate VAT and IEPS exemption on temporary imports
Improved cash flow and liquidity
Faster customs clearance and reduced administrative costs
Stronger reputation with clients, suppliers, and authorities

How long does the certification last?

CIVA has three levels:

A: valid for 1 year
AA: valid for 2 years
AAA: valid for 3 years
Higher levels reflect stronger compliance history, larger investment, and longer IMMEX experience.

What happens if my company loses certification? If SAT cancels a certification, the company must wait two years before reapplying. Cancellation may also lead to temporary import restrictions and VAT liabilities on current inventories.

What are the most common causes of cancellation?

Frequent issues include:

Outdated or inconsistent records in SAT’s Catálogo de Datos Generales
Missing waste declarations in the Módulo de Materiales Utilizados
Failure to maintain the required export return ratio (60%–80%)
Non-located temporary imports or missing asset documentation

How can a company maintain CIVA certification?

Maintain strict fiscal discipline: update company data, reconcile inventory reports monthly, validate suppliers, and submit renewal requests within the 30-day window before expiration. Ongoing monitoring is key to uninterrupted compliance.

Is CIVA the same as IMMEX? No. IMMEX authorizes companies to operate export manufacturing programs, while CIVA is a tax certification that complements IMMEX by deferring VAT and IEPS payments. Both programs work together but have separate compliance requirements.

Does CIVA apply to all imported goods?

Most raw materials, components, and equipment qualify, but “sensitive” goods — such as textiles, steel, or electronics — require additional authorization and reporting.

Can a third-party or shelter company manage CIVA for me? Yes. Many manufacturers operate under a shelter provider’s CIVA and IMMEX framework, allowing them to enjoy the benefits while outsourcing administrative and compliance burdens to experienced partners like Prodensa.

Common Reasons for IMMEX and CIVA Suspension or Cancellation

Based on over 40 years of experience supporting international manufacturers in Mexico, we have observed recurring issues that frequently trigger SAT cancellation procedures or compliance requirements for IMMEX and CIVA holders. These include:

Inconsistencies in Registered Information
Missing or outdated records in the Catálogo de Datos Generales—for example, not registering all company addresses linked to IMMEX operations.
Material Usage Reporting
Failure to declare waste generated in the production process within the Módulo de Materiales Utilizados.
Outdated Balance Reports
Differences between reported balances and recorded operations due to non-updated Reporte de Saldos.
Legal Documentation of Assets
Incomplete proof of legal use or possession of machinery, equipment, and infrastructure needed for production.
Return Ratio Non-Compliance
Not meeting required export return percentages (60% for sensitive goods, 80% for others), often revealed during monthly data validations.

How Prodensa Mitigates These Risks

To address these challenges, Prodensa’s monitoring service provides proactive compliance oversight, including:

Review of IMMEX and CIVA files, plus timely submission of notices to SAT.
Ongoing monitoring of IMMEX and CIVA program validity.
Tracking of sensitive tariff codes and addition notices (with 30-day anticipation).
Monthly review of export return percentages.
Verification of suppliers engaged in virtual operations under Article 69 of the CFF.
Monitoring of lease agreements to ensure validity.
Validation and reconciliation of Annex 30 reports.
Review of compliance with electronic accounting obligations.

Request a Proposal for Trade Compliance Support

Prodensa Insights

CIVA Tips from Prodensa Experts

Build a solid track record before applying Demonstrate consistent IMMEX operations, accurate export activity, and fiscal compliance. SAT prioritizes applicants with proven reliability.

Keep your corporate and inventory records aligned Ensure all company addresses, legal representatives, and digital tax credentials (RFC, CFDI) are up to date. Synchronize Annex 24 and Annex 30 to avoid data mismatches.

Watch for “sensitive goods” classifications Certain tariff codes require prior authorization or extra controls. Notify SAT 30 days in advance when adding new codes or materials.

Strengthen internal controls and documentation Maintain clear proof of legal use or possession of machinery, facilities, and leases. Missing evidence is a common cause for suspension.

Monitor export return ratios closely Stay above required re-export percentages (60% for sensitive goods, 80% for others). Falling below can trigger cancellation procedures.

Anticipate audits — don’t react to them Run internal mock audits, reconcile balances monthly, and verify your Módulo de Materiales Utilizados and Reporte de Saldos regularly.

Validate your suppliers and subcontractors Confirm they meet tax obligations under Article 69 of the Fiscal Code. Your compliance depends on theirs.

Renew on time File renewal requests within 30 days of expiration. Once canceled, a company must wait two years to reapply.

Track regulatory and digital rule changes Stay current on CFDI updates, electronic accounting addenda, and new customs or labor rules impacting CIVA.

Use expert monitoring services Partnering with specialists ensures early detection of compliance risks — transforming CIVA from a reporting burden into a strategic advantage.

Maintaining Certification: A Discipline of Trust

CIVA certification is not automatic or permanent. It requires consistent documentation, periodic audits, and transparent communication with authorities. If non-compliance occurs, SAT grants companies 10 business days to present evidence or arguments before formal cancellation. In the event of cancellation, companies must wait two years before reapplying.

Renewals are possible within 30 days prior to expiration, provided all requirements remain in force — making proactive monitoring essential to maintaining uninterrupted certification.

Compliance Today, Competitiveness Tomorrow

In today’s trade environment, compliance is not just a legal obligation — it’s a competitive differentiator. Companies that align operational excellence with fiscal transparency gain access to faster customs clearance, trusted partnerships, and stronger cash flow.

At Prodensa, our Fiscal & Trade Compliance team combines technical depth, regulatory experience, and decades of field knowledge to help clients transform compliance into an operational strength.

Contact our Fiscal & Trade Compliance experts for a CIVA program review or to learn more about our IMMEX & CIVA Monitoring Services.

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