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

France to introduce e-filing for 13th Directive VAT...

From 1 July 2021, non-EU businesses must request 13th Directive VAT refund claims electronically through a fiscal representative established in France. These...

SEE MORE
LATEST NEWS

Norway extends reduced VAT rate to September 2021

Norway has confirmed that the temporary reduced VAT rate reduction, from 12% to 6%, will be extended from 30 June 2021 to 30 September 2021. The reduced VAT...

SEE MORE
LATEST NEWS

Canada: GST to be charged on digital goods and...

From 1 July 2021, the Canadian Revenue Agency (CRA) will introduce Goods and Sales Tax (GST)/Harmonised Sales Tax (HST) on sales of e-commerce goods and...

SEE MORE

Gated Content

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