Global Daily Tax News, Mexico Adds To List Of Firms Registered Under Digital VAT Regime, (Jan 22, 2024)

Mexico has released an updated list of digital services providers registered to collect and remit VAT on supplies to Mexican consumers.

The list, containing 201 providers, is included in Official Notice 700-04-00-00-00-2024-002, which is current to December 31, 2023. This is an increase of three providers compared with Official 700-04-00-00-00-2023-145, issued on November 17, 2023.

The list newly includes Dataminr Inc, Dmx LLC, and Semrush Inc.

Effective from June 1, 2020, provisions in Article 18 of the VAT law provide that foreign providers of electronically supplied services who lack a permanent establishment in Mexico are obligated to collect value-added tax on supplies to consumers in Mexico. Books, newspapers, and electronic journals are specifically exempt.

Entities covered by the requirements are required to register with the tax authority within 30 calendar days of making their first supply and appoint a tax representative in Mexico. They are obligated to charge value-added tax at 16 percent on their supplies to consumers and declare and pay this VAT to the Mexican agency by the 17th of each month. Further, taxpayers covered by the regime must provide transactions data on a quarterly basis, also by the 17th day of month following the end of the previous quarter.