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|
|Bahamas||10%||Jan 2015||BSD 100,000|
|Barbados||17.5%||Dec 2019||BBD 200,000|
|Costa Rica||13%||Oct 2020||Nil||Withholding VAT option|
|Dominican Republic||18%||2023||Nil||Currently withholding VAT|
|El Salvador||13%||2022||-||Replace Withholding VAT|
|Paraguay||10%||Jan-21||Nil||Withholding VAT; 4.5% DST|
|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|