As part of the measures to increase the efficiency in the collection of VAT, there is a modification to the VAT treatment applicable to certain digital services provided from abroad (when there is no permanent establishment in Mexico) when the services are provided to recipients in Mexico. VAT is payable by the foreign entity, and that entity must register in Mexico for VAT and withholding tax purposes.
Source KPMG
Latest Posts in "Mexico"
- Mexico Imposes 8% Excise Tax on Violent or Adult Video Games and Related Digital Content
- Mexico Expands Digital Platform Tax Withholding Rules Under 2026 Tax Reform Package
- Mexico 2026 Tax Reform: Key Changes to Electronic Invoicing (CFDI) and Compliance Requirements
- Mexico’s VAT Fraud Crackdown Needs True Real-Time Invoice Verification, Not Platform Enforcement
- Briefing Document: Electronic Invoicing and Real-Time Reporting in Mexico (CFDI)
