VATLive > Blog > Mexico > Mexico updates VAT on foreign e-services providers

Mexico updates VAT on foreign e-services providers

  • May 16, 2020 | Richard Asquith

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. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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