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

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

UK cuts hospitality and tourism VAT to 5% until...

From 15 July 2020 to 12 January 2021, the UK will cut the VAT rate applicable on hospitality services from the standard rate of 20% to the reduced rate of...

SEE MORE
LATEST NEWS

Canada extends the sales tax return submission...

The Province of Manitoba has extended the sales tax return submission deadlines to 20 October 2020 for small and medium sized businesses. This covers all...

SEE MORE

Gated Content

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