Mexico: 2020 tax reform modifies the application of the tax law to digital commerce

In brief

The 2020 Mexico Tax Reform modifies the Income Tax Law (MITL) and the Value Added Tax Law (VATL), impacting companies and users engaged in the Mexican digital market. While the new tax reform requirements become effective June 1, 2020, preparations for timely compliance need to begin immediately.

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Mexico – 30 June 2020 VAT registration required for non resident companies providing digital services

Rendering of Digital Services– June 2020
The digital services provided to recipients located in the national territory will be subject to VAT.Read More »

Mexico Tax Reform 2020

Mexico approves significant tax reform

In brief
Mexico’s Congress approved modifications to the following laws on October 30: The Income Tax Law (MITL), the Value Added Tax Law (VATL), the Excise Tax Law (IEPS) and the Federal License Law (LFD), and the Federal Fiscal Code (FFC) (together, ‘the 2020 Mexican Tax Reform’). Enactment of the 2020 Mexican Tax Reform will occur on its date of publication in the Official Federal Gazette. The 2020 Mexican Tax Reform will enter into effect January 1, 2020, unless an article expressly states a different effective date.Read More »

Mexico – New proposed VAT laws for 2020

The Executive Branch of Mexico’s federal government filed last September 8th, the 2020 Budget to the Congress. Among the relevant changes included in the Budget 2020 are those related to the Value Added Tax Law (VATL).

As of April 2020 (if approved) nonresident entities that provide digital services would be subject to 16% VAT rate if the recipient is located within Mexico, and the service is provided through applications or digital content, over the internet, and the process is primarily automatized. Such VAT will be determined upon the payment of the service rendered.Read More »

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

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

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Mexico: Additional benefits granted to certified IMMEX companies

Photo_RGB_R_CAN_VC_D3_CM2_0137.jpg Port terminals distributing a variety of commodities and commercial goods. Provides container and bulk shipping hubs for marine, rail and land transport. Huge port infrastructure and impressive views. Primary and manufactured goods - forestry, steel and container shippingFirst introduced in November 2006, the IMMEX Program promotes the Mexican export industry by certifying and allowing specific Mexican exporting companies to temporarily import goods for use in an industrial process or service to produce, transform or repair foreign goods for subsequent export, or to provide export services, while being exempted from paying general import tax, value added tax and, where appropriate, countervailing duties.Read More »

Mexico: Publication of e-filing rules for temporary imports

People walking in a pedestrianised area - PwC, PwC_PC_ Global_ 303.jpgWith effect from 1 January 2015, companies which have obtained VAT and Excise Tax Certification or which will guarantee the fiscal interest, will be obliged to electronically transmit monthly discharge reports relating to temporary import declarations on withdrawals from bonded warehouses, returns, regime changes, and virtual transactions (among others).

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