Mexico proposes the implementation of VAT on e-commerce supplies

1 August 2019

The Mexican senate is proposing to levy VAT at 16%, on digital e-commerce supplies provided to consumers by non-resident online platforms.

At present, non-resident online platforms do not have to charge VAT on their sales in Mexico. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Mexican resident providers, the Mexican senate proposes that VAT at 16% will be applied on these types of transactions from as early as January 2020.

If introduced, the VAT on these transactions will be withheld by the payment providers, who will pay this direct to the tax authorities.  This in principle will mean that the foreign supplier will not have a requirement to VAT register in the country.

This follows Argentina, Colombia and Uruguay who have also imposed VAT on foreign online platform providers.

LATEST NEWS

Belgium to implement business to business (B2B)...

In May 2022, the Belgium Chamber of Representatives published a draft law that could oblige electronic invoicing between VAT registered companies in the...

SEE MORE
VAT news
LATEST NEWS

Romania to introduce mandatory business to government...

The Romanian tax authorities have confirmed that businesses that sell to government departments will be required to issue e-invoices from 1 July 2022. Since...

SEE MORE
VAT news
LATEST NEWS

New EU e-commerce packages – EU confirms initial...

The European Union (EU) has released statistics showing that the introduction of the EU e-commerce packages in July last year, has been a success. The figures...

SEE MORE
VAT news

Gated Content

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