Mexico Finalizes Insurer VAT Shift as Sheinbaum Rejects Talk of Condonation

Overview

• President Claudia Sheinbaum said there will be no fiscal condonation for insurers, countering reports that prior VAT debts would be forgiven in exchange for future payments.
• The SAT expects yearly collections of 20,000 to 25,000 million pesos under the new regime, according to its head of collections, Gari Flores.
• Hacienda’s interpretation states VAT is not creditable when goods or services are used solely to indemnify the insured, shutting down a long‑running industry practice.
• The Chamber of Deputies approved a fiscal stimulus that legislators seek to include in the 2026 revenue law, allowing installment payments if received by the Treasury by December next year.
• Industry groups warn auto and major medical premiums could rise by roughly 10–20% as companies comply, and Quálitas said it will disclose potential impacts on its 2025 results to the Mexican Stock Exchange.