- An 8% excise tax is imposed on violent or adult video games sold in physical format to B2C customers in Mexico, in addition to the 16% VAT; imports are excluded.
- The tax also applies to digital access/downloads, including free games with paid content, and 70% of subscription/membership fees are presumed taxable if not itemized.
- Foreign providers must register with Mexican tax authorities and comply with digital VAT regime obligations.
- Digital intermediary platforms must withhold 100% of the excise tax, issue e-invoices, and report revenues to the SAT.
- Providers must identify taxable games, issue detailed tax receipts, and non-compliance can result in temporary internet suspension for the platform.
Source: kpmg.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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