Mexico updates registered digital services VAT list

Mexico’s tax administration has updated its list of VAT-registered foreign providers of digital services. Any provider not on this list is subject to withholding tax on any B2C sales to Mexican consumers for electronic services.

Mexico introduced VAT obligations on non-resident providers back in June 2020. This requires offshore to VAT register or open to split payments passing via financial intermediaries (credit card, payment providers, banks etc). The payment providers can use this list to ensure they are correctly deducting VAT if the customer on any transaction is missing and therefore not requiring a VAT deduction.

Mexico is one of the latest countries to implement the OECD’s model for taxing digital services locally via VAT. Around 80 countries do so around the world. This compares to just 10 in 2015.