Navigating Latin America’s VAT Rules for Digital Service Providers: Compliance Challenges and Strategies

• Latin America played a vital role in establishing VAT mechanisms
• Rapid expansion of digital services created new challenges
• Regulatory framework varies from country to country
• Overview of VAT frameworks in Latin American countries
• Compliance challenges for non-resident digital suppliers
• Brazil does not require non-resident digital suppliers to pay taxes
• Brazil proposed a tax reform in 2024 to implement a Dual VAT regime
• Mexico implemented a tax reform in 2020 requiring non-resident digital suppliers to register for and collect VAT at a 16% rate

Source: vatabout.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.

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