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Mexico non-resident digital service VAT list revised

List of VAT registered non-resident digital service providers extended to 159

Mexico’s Tax Administration has provided an update to its regular listing of foreign digital services providers and intermediaries that are VAT registered – the Federal Taxpayers’ Registry. This means payment provides (debit/card cards; bank transfers; internet payment companies etc) do not have to withhold VAT on payments to them from Mexican consumers.

Mexico VAT on digital services was introduced in June 2020. There are now 159 digital service providers on Mexico’s list of digital service providers. Since 1 January 2021, the tax authority can block internet access to foreign digital service providers that are not registered, do not appoint a legal representative or do not provide a Mexican domicile.

This ‘positive list’ approach to digital services Withholding VAT, listing VAT registered businesses, compares to the negative list approach adopted by Colombia and Paraguay where the tax authorities attempt to list non-residents not VAT registered but who are supplying digital services to consumers.

VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

Central and South America VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Argentina 21% Apr 2018
Aruba 4% Jan 2023 -
Bahamas 10% Jan 2015 BSD 100,000
Barbados 17.5% Dec 2019 BBD 200,000
Bolivia 13% Nov 2022 -
Brazil 26.5% Jan 2026 n/a Regulations in parliament
Chile 19% Jun 2020 Nil
Colombia 19% Jan-18 Nil
Costa Rica 13% Oct 2020 Nil Withholding VAT option
Dominican Republic 18% 2023 Nil Currently withholding VAT
Ecuador 12% Sep 2020
El Salvador 13% 2022 - Replace Withholding VAT
Guatemala 12% TBC
Honduras 15% 2022 HNL 250,000
Panama 10% 2022 Withholding VAT
Paraguay 10% Jan-21 Nil Withholding VAT; 4.5% DST
Peru 18% 2022 Nil Withholding VAT
Puerto Rico 10.5% Jan 2020 $100,000; or 200 transactions Marketplaces
Suriname 10% Jan 2023 SRD 500,000
Uruguay 22% Jan 2018 Nil VAT and Withholding Tax


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