Economy

Uber, Netflix and Amazon register with Mexico's tax authority to comply with new VAT Law

Mexico has started charging taxes on foreign digital platforms last month

mexican peso
Photo: Fernando Macias Romo/Shutterstock
  • Since June 1, foreign companies that provide digital services to users in Mexico through applications are required to pay Value Added Tax (VAT);
  • Digital platforms who provide intermediation services will also have the obligation to pay both Income Tax (ISR) and VAT.

Mexico’s Tax Administration Service (SAT) published a list of the first 13 digital platforms that registered its Federal Taxpayer Registry (RFC), as part of the country’s new obligations, in force since June 1. Based on these recently applied rules, technology platforms, even the ones headquartered abroad, and those who use them must pay taxes.

The 13 platforms registered with the RFC, according to the list, are Uber, Didi, Bloomberg Finance, Alexa Internet, Rebuilding Technology, Amazon Services Europe, Homeaway, Microsoft Corporation, Expedia, Netflix, Amazon Services International, Amazon.com Services and Homeaway.com.

Since June 1, foreign companies that provide digital services to users in Mexico through applications are required to pay Value Added Tax (VAT) for their services.

Articles of the new VAT Law establish that it is the obligation of firms without permanent establishment in Mexico and that provide digital services to users in the country’s territory, to register in the RFC.According to El Financiero, digital platforms who provide intermediation services will also have the obligation to pay both Income Tax (ISR) and VAT