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Mexico Finalizes 2025 VAT Deal With Insurers as Premiums Expected to Rise

President Sheinbaum said firms will pay the tax on indemnity payments this year under a clarified rule expected to add about 20 billion pesos annually.

Overview

  • Sheinbaum confirmed the SAT reached an agreement with insurers to remit VAT tied to claim payments, while rejecting that it constitutes a tax condonation.
  • The SAT projects additional yearly revenue of 20,000–25,000 million pesos from the shift, closing years of disputes over VAT on indemnities.
  • Under the change, VAT generated when insurers pay third‑party providers for claims can no longer be credited and must be paid to the tax authority.
  • Industry groups say auto and major medical policies will face the largest adjustments, with AMASFAC estimating premium increases of roughly 10% to 20%.
  • AMIS said companies will comply, some insurers have begun pricing changes, and Quálitas plans to disclose the financial impact to the Mexican stock exchange.