Type: Legislation
There are now 155 foreign companies offering digital services that are compliant with VAT.
An expanded list of non-resident digital or electronic service providers who have registered to charge Value Added Tax has been released by the Mexican SAT tax administration.
In Mexico, a VAT on digital services was implemented in June 2020. Every two months throughout the year, SAT then releases a list of these providers. The customer is responsible for paying the VAT if a provider is not on the list. Such providers may be blocked by SAT.
14 new providers have joined SAT since the year’s beginning.
Mexico also provides for the withholding of VAT from providers of goods and services to Mexican consumers through intermediary services. Payment providers are required to deduct VAT from payments made to foreign providers or intermediaries who are not registered for VAT. Any platform or middleman that facilitates the use of foreign providers is required to collect VAT. They must first register as a withholding agent with the tax office. For those with incomes under MXN 300,000, a simplified intermediary reporting regime is in place.
Effective date: July 2022