Mexico’s new tax that is value-added electronic solutions

Mexico’s new tax that is value-added electronic solutions

Mexico features formally signed up with the list that is growing of imposing some type of electronic income tax. Mexico’s Congress for the Union passed away an amendment to your Value-Added taxation Law that will enable when it comes to taxation of on-line selling meant to clientele situated in Mexico, whether or not the dealer features a presence that is physical. The rules that are new bring impact on 1 Summer 2020.

VATL modification analysis

Mexico’s Value-Added taxation laws (VATL) modification calls when it comes to assortment of value-added income tax (VAT) at a rate that is standard of % on particular electronic treatments made by international vendors to subscribers positioned in Mexico. To allow vendors to come under the electronic providers taxation, no nonexempt existence in Mexico is required.

The VATL supply will not distinguish between business-to-business (B2B) and business-to-consumer (B2C) deals. All suppliers are subject to the new legislation, assuming their services are taxable and fit the VATL’s definition of digital services as a result.

Statutory types of electronic service consist of getting and/or accessing artwork, motion pictures, musical, book, ideas, video clip, video gaming (like betting), ring tones, visualization of web reports ( not eBooks or digital models of magazines), site visitors, environment, on the web bars, dating sites as well as other media material, distance education, tests and exercise. Some real life sample of these service incorporate Netflix, Tinder as well as the learning that is online Coursera. Monetary solutions, fees solutions, information storage space, and applications sale and employ aren’t susceptible to Mexico’s newer VATL supply. (more…)