Mexico updates VAT on foreign e-services providers

Mexico is to impose Value Added Tax collection obligations on non-resident providers of digital or electronic service providers to consumers. This includes downloads or streaming media, app’s, e-books, journals and dating websites. It has this week confirmed the process for withholding VAT on the new regime.

VAT will be imposed from 1 June 2020, and foreign providers must be VAT registered by 1 July to complete the first returns. VAT in Mexico is currently 16%.

Providers must appoint a fiscal representative. Invoices are not required, but simplified withholding VAT vouchers must be produced and files online.

Check Avalara's global electronic and digital services VAT guide.