- Mexico plans to introduce new VAT withholding rules for online platforms. Platforms must withhold VAT on behalf of business users, with specific percentages based on tax ID presence. 100 percent VAT withholding applies if the business lacks a permanent establishment in Mexico or uses a foreign bank account. The change expands on previous VAT provisions for foreign electronic service providers. Entities must register with the tax authority, appoint a tax representative, and report transactions quarterly.
Source: answerconnect.cch.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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