1E9Ct5D

128C H A P T E R V I IIn other words, the carrying out of certain acts or activities within Mexican territorygives rise to VAT. However, VAT is incurred and therefore must be paid at the momentwhen consideration is received and up to the amount of such consideration.Except in the case of carrying out taxed acts or activities incidentally, VAT should becalculated and paid by the calendar month, through a tax return that should be filed inthe authorized offices by the 17 th day of the month immediately following that in whichthe payment was made.The amount of VAT to be paid is the difference between the VAT corresponding to thetotal of taxable acts and activities carried out during the month concerned and the taxthat can be offset for the same period.If in calculating the VAT the taxpayer has a credit balance because the tax that can beoffset is greater than the VAT incurred during the month concerned, it can be offsetagainst the VAT corresponding to subsequent months until it is used up. A refund canalso be requested, provided that the request is for the refund of the total credit balance,or it can be offset against other taxes in accordance with the stipulations of the FederalTax Code (Código Fiscal de la Federación).4.5. Offsetting VATThe payers of this tax are entitled to subtract from the VAT they owe the VAT that wastransferred to them and that they paid for the purpose of importing goods and services,an act that is known as offsetting.Not all VAT that was transferred to the taxpayer or that the taxpayer paid for the importationof goods or services can be offset. Taxpayers can only offset VAT that was transferredto them for the acquisition of goods or services or the granting of the temporary use orenjoyment of goods that are strictly essential for the carrying out by such taxpayers of actsor activities taxed with VAT at the rate of 15 percent, 10 percent or 0 percent.If the taxpayer incurs expenses for carrying out in Mexican territory acts or activitiesthat are exempt, the VAT that was transferred to the taxpayer and the payment for theimportation cannot be offset under any circumstances.In the cases in which the taxpayer simultaneously carries out acts or activities that aretaxable and exempt, the VAT that was transferred to the taxpayer and that the taxpayerpaid for the importation corresponding to strictly essential expenses can be offset 100percent, as long as it can be identified with the taxed activities. If this is not possible, thetaxpayer can offset the VAT that was transferred to it and that was paid for the importationin the proportion that the total value of the taxed activities represents in the totalvalue of the activities carried out in the month concerned.In those cases in which the taxpayer carries out exempt and taxed acts or activities,the transferred VAT and the VAT paid for the importation of items considered investments