- New Mexico Department of Revenue has clarified rules regarding gross receipts tax on digital advertising services
- The 4.8% gross receipts tax now applies to digital advertising on platforms like search engines and banner ads
- Digital advertising is now treated similarly to other forms of advertising subject to the gross receipts tax
- Digital platform is defined as any website accessible via the internet, and receipts from digital advertising services used by website providers are taxable if the site is viewable in New Mexico and displays digital advertisements
- Final rules source receipts to the location of the advertising service provider
- The goal of these regulations is to align the taxation of digital advertising with technology and ensure fair application without singling out digital advertisers
- Taxpayers in New Mexico providing digital advertising services should ensure their sourcing of the gross receipts tax is consistent with the adopted regulations.
Source: salestaxinstitute.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
