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Mexico’s digital services VAT: Who is registered so far?

Mexico’s tax authorities have published  a list of nonresident companies that have registered under Mexico’s digital services VAT regulations. The list includes global tech giants, such as Amazon, Uber, Airbnb and Booking.com. The breadth of companies is notable, ranging from online accommodation platforms to social media companies to online web services (such as Wix.com) and streaming services.

In line with global trends, Mexico implemented VAT on e-commerce and digital services in June 2020. The VAT rate is 16%.

Digital services: scope of rules

As we can see from the list of VAT registered nonresident businesses, the scope of the regulations is fairly broad. Digital services, under the regulations, range from news sites to dating apps to distance learning, and beyond. 

If you supply digital services, or sell goods online, to customers in Mexico, it’s important to understand your VAT obligations. If you have any doubts, consult an e-commerce VAT specialist for precise up-to-date information. 

Digital VAT has gone global 

Digital VAT is now everywhere. Each year, more countries apply some kind of VAT on e-commerce and the supply of digital services by overseas companies. 

Compliance can be difficult because the precise regulations, including VAT thresholds and the definition of a digital service, vary. Moreover, compliance processes are different in each jurisdiction.  In some countries you may require an intermediary to manage your VAT. 

But there is a solution that makes maintaining 100% global VAT compliance easy. Global VAT compliance is simple when you have a single point of contact that manages all your VAT obligations.   

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