Mexico Ends VAT Registration for Non-Resident Digital Providers Without Local Domicile Proof

• Mexico ends VAT registration path for non-resident digital providers without a physical presence
• New rule requires proof of domicile for tax registration
• Acceptable documents include utility bills or Mexican bank statements in the entity’s name
• Foreign providers previously used a simplified registration framework
• New rules require in-person procedures and local documentation
• Foreign entities without local establishment cannot update VAT registration digitally
• Policy disrupts VAT compliance for non-resident platforms
• Providers may need local services to produce proof of address
• Some may suspend compliance or seek costly workarounds
• Industry urges SAT to clarify procedures for digital service providers
• Move seen as a barrier to non-resident VAT registration affecting tax collection and market access

Source: globalvatcompliance.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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