- Starting January 1, 2026, digital intermediation platforms must withhold 50% VAT on payments to Mexican legal entities for goods, services, or temporary use of goods.
- They must withhold 100% VAT on payments for goods sold in Mexico by foreign residents without a permanent establishment, including payments to foreign bank accounts.
- Platforms are required to remit withheld amounts to Mexican tax authorities, issue invoices, and report client information.
Source: taxand.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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