Mexico to Refund VAT Tax for Tourists

It may soon cost you less to shop in Mexican ports!

Industry watcher Travel Weekly reports that Mexico soon will begin reimbursing the 15% value-added tax (VAT) that cruisers and other tourists pay when buying goods in the country.

The travel publication says that as early as June tourists will be able to use kiosks at five major airports (Mexico City, Cancun, Guadalajara, Los Cabos and Puerto Vallarta) to get back the tax, though the kiosks won't appear at cruise ports (and other airports) until 2009.

Cruisers only will be able get refunds for purchases totaling at least $115 (1,200 Mexican pesos), and the purchases have to be made at approved stores with cash or credit/debt cards issued outside of Mexico, Travel Weekly says.

No surprise that other restrictions may apply.

This is good news for cruisers who enjoy shopping in ports, and good news for Mexican shops as well... except for the extra paperwork. Having taken advantage of VAT refunds in many other countries, I find it's usually well worth the effort.

Now It's Mexico's Turn to Take A Bite

Mexico has approved a 56 Peso (approximately $5) head tax on cruise passengers, effective July 1, 2008. Several ports, including the struggling and rebuilding port of Costa Maya, opposed the tax.

The tax will be distributed 95% to municipalities, 5% to the National Institute of Migration. I'm guessing that's their immigration department which handles the paperwork for the ships when they come into port.

Several ports in the Caribbean have toyed with instituting large head taxes on cruise passengers. Hopefully this fairly small tax won't be the first of many increases.