Mexican government to tax digital services from other countries

LatAm List – On February 11th, 2020 the Mexican government a bill that imposes a tax on digital services from other countries. The 16% value-added tax (VAT) will come into effect on June 1st, 2020.

The tax will be applied to all online applications, including video, audio streaming, images, and education.

According to a report, in order to be eligibile for the tax a person must: 

  • Be a resident of Mexico
  • Make the payment through an intermediary
  • Have a telephone number provided by a service provider that has Mexico’s country code
  • Have an IP address that corresponds to a range addresses assigned to Mexico

Providers will also have to register for VAT in Mexico and get a tax identification number in the month of June.

Read more on PYMNTS.

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