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.