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VAT-Recovery-IMMEX-Taxes-Mexico

beyond recovery: Rebuilding VAT Strategy for Long-Term Compliance

A VAT Success Story for a U.S. Manufacturer in Mexico
PROJECT
Unlocking $900 million pesos in unclaimed VAT refunds
WHAT WE DID
Secured high-value refunds; re-engineered process
CLIENT
A U.S. manufacturer of paper products, opened in 2014
TIMELINE
June 2024 – January 2026 (Ongoing)

THE CHALLENGE:
UNSUCCESSFUL VAT REFUND CLAIMS

A U.S.-based manufacturer operating in Mexico, was burdened with five years of unclaimed VAT refunds totaling over $900 million MXN in historical balances that they were unsuccessful in recovering. Previous attempts to recover these funds had failed, with tax authorities rejecting claims en masse. Additionally, the company lacked the internal resources to effectively manage the volume of administrative tasks required with the Mexican tax authority (SAT).

OUR SOLUTION:
RESTRUCTURE THE PROCESS

Prodensa was engaged to implement a high-volume, strategic reconstruction and risk mitigation in the process of collecting VAT. The project was designed to submit 5–6 refund claims per month, while simultaneously managing the resolution of existing requirements without slowing the submission schedule.

 

 Mass Reconciliation of VAT Balances

 Simultaneous submission and follow-up of refund claims

 Close supervision of support teams

  Coordination and compliance oversight

  Re-engineering of VAT processes and long-term compliance

THE RESULTS:
FINANCIAL GAINS

The client regained the ability to operate with improved cash flow, mitigating a significant financial bottleneck.

  • $405 million MXN in recovered cash flow within 6 months
  • $370 million MXN in historic VAT refunds recovered
  • $35 million MXN in additional finance gains from updates
  • 100% approval rate of refund claims submitted to date
  • $982 million MXN in total eligible historical VAT balances reviewed

STRATEGIC IMPACT:
A NEWFOUND CONFIDENCE

This project not only improved liquidity but also restored confidence in the company’s ability to navigate Mexico’s complex tax system. The structured, methodical approach and technical precision brought tangible results in a short period—positioning the company for long-term operational stability.

WHY PRODENSA?
ROBUST SYSTEMS

With over 40 years of experience and specialized tools, we efficiently managed the complex data requirements for VAT reimbursement. Supporting more than 100 ongoing VAT recovery operations, our systems are designed to handle high volumes of transactional data with accuracy and scalability. This enabled us to streamline documentation and accelerate SAT approval for the client.

Our AI-powered data management tool enhanced precision and significantly reduced processing time, delivering faster and more reliable results.

 

Mexico-how-to-recover-VAT-from-SAT
"We are extremely pleased with Prodensa's work."
VP Operations
ArturoQuintero-small
TOUCH
ARTURO QUINTERO Finance Director
ARTURO QUINTERO Finance Director

  • Former Plant Controller in the automotive industry, managing financial operations for a plant with 2,000+ employees and $250M USD in annual sales.

  • Has directed the successful start up and project management of more than 40 foreign investment operations in the Bajío region of Mexico.
  • Is experienced in multi-company ERP implementations and migration, including Oracle Cloud and SAP BPC.
  • Serves as a National Council Member of Index Nacional, contributing to national policy and industry development.
  • Holds a degree in Public Accounting and an International MBA from Tecnológico de Monterrey.

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This Case Study is ongoing
and will be updated periodically.