Mexican VAT to apply to e-services from 1 June 2020

3 February 2020

Mexico is set to extend its Value-Added Tax (VAT) system to cover digital services supplied by non-resident (foreign) companies from 1 June 2020.

At present, foreign businesses providing digital services in Mexico do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gives to non-resident companies over Mexican resident providers, the Mexican government has now announced that VAT at 16% will be applied on these types of transactions from June 2020.

This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
 

LATEST NEWS

Emergency VAT measures to combat the financial impact...

Due to the negative financial impact that the Coronavirus pandemic is having on businesses all over the world, a number of tax authorities have implemented...

SEE MORE
LATEST NEWS

France relaxes conditions for Import VAT Postponed...

From January 2021, France will drop all requirements on businesses who are entitled to use the Import Value-Added Tax (VAT) Postponed Accounting regime in the...

SEE MORE
LATEST NEWS

Cameroon VAT on foreign e-commerce

Cameroon has extended its Value-Added Tax (VAT) system to cover supplies of online goods and services supplied by non-resident (foreign) companies in the...

SEE MORE

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.