Mexico has officially joined the growing list of countries imposing some sort
of digital tax. Mexico's Congress of the Union passed an
amendment to the Value-Added Tax Law that will allow for the
taxation of online sales made to customers based in Mexico,
regardless of whether the supplier has a physical presence
in-country. The new rules will take effect on 1 June 2020.
VATL amendment overview
Mexico's Value-Added Tax Law (VATL) amendment calls for the
collection of value-added tax (VAT) at a standard rate of 16
percent on certain digital services rendered by foreign suppliers
to customers located in Mexico. In order for suppliers to fall
under the digital services tax, no taxable presence in Mexico is
needed.
