Foreign companies that provide digital services to users in Mexico through applications must pay Value added taxes (VAT) for those services. This law came into effect in June 2020. The largest international companies providing services through digital platforms are already paying and reporting taxes in Mexico.
Physical people and companies that sell goods, provide services, provide lodging, or rental services through tech platforms or applications must withhold income tax (ISR) and value added tax (VAT) for physical persons with business activities that sell goods, and services like lodging.
Source Edicom
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