- The 2026 Economic Package proposed by Mexico’s Federal Executive Branch requires digital platforms to withhold VAT and income tax from Mexican legal entities. For sellers with a Mexican tax ID, platforms must withhold 50% VAT and 4% income tax, while for those without an ID, 100% VAT and 20% income tax must be withheld. Platforms must also withhold 100% VAT in certain cases, such as sales by nonresidents with goods in Mexico and payments to foreign bank accounts. Foreign digital service providers must obtain a Mexican tax ID and comply with tax regulations. An 8% excise tax is proposed on sales of video games with violent or adult content, applicable to B2C transactions in Mexico, in addition to the standard 16% VAT. Imports are excluded from this rule.
Source: regfollower.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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