Mexico – VAT obligation for none-resident companies providing electronic services

Cancore Building Services Ltd
Mexico
MXN 400,000 - 600,000
Descripción del empleo

Amendment to the current VAT Law and the federal fiscal code was submitted to the Chamber of Deputies on 5 of September. The aim is to amend the VAT Law in order to tax services provided through digital platforms by none resident companies. In order words it means that foreign companies without any permanent establishment in Mexico providing services through platforms to customers domiciled in Mexico will be subject to VAT. The bill mentions two options

Foreign companies without a permanent establishment in Mexico would be entitled to opt to pay the VAT directly or they could be subject to the VAT withholding mechanism. In case of the second option – application of the wirholding mechanism – the obligation of collection and payment will be with the intermediaries. Financial institutions and other bodies through which the payment of services is made in advance, would be obliged to collect and to pay the tax due. These persons will be jointly liable for the taxes to be paid.

This is a major change which might be starting in Americas in Mexico but I am quite sure that shortly we will see such changes in many other countries.

One thought on “ Mexico – VAT obligation for none-resident companies providing electronicservices ”

Obtenga la revisión gratuita y confidencial de su currículum.
Selecciona un archivo o arrástralo y suéltalo
Avatar
Asesoramiento online gratuito
¡Mejora tus posibilidades de entrevistarte para ese puesto!
Adelántate y explora vacantes nuevas de Mexico – VAT obligation for none-resident companies providing electronic services en