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Mexico updates approved non-resident VAT registered digital service providers list

List of VAT compliance foreign providers of digital services grows to 155

The Mexican Servicio de Administración Tributaria, SAT tax authorities has published an extended list of non-resident digital or electronic service providers who have registered to charge Value Added Tax.

Mexican VAT on digital services was introduced in June 2020. SAT then publishes a list of these providers every two months of the year. Where a provider is not included on the list, then the customer is liable for the VAT. SAT can block such providers.

SAT has added 14 new providers since the start of the year.

Intermediaries and withholding VAT

Mexico also makes provision for withholding VAT by intermediation services for providers to Mexican consumers. Where a foreign provider or intermediary is not registered for VAT, payment providers must withhold VAT on payments to them. Any platform or intermediary acting as a facilitator for foreign providers has VAT obligations. Firstly, they must register with the tax office as a withholding agent. There is a simplified intermediary reporting regime for those with incomes below MXN 300,000.

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North America VAT on digital services

Comments (click for details) Rate Implementation Date Threshold Comments
Canada 5% Jul 2021 C$30,000
Canada British Columbia 7% Apr 2021 C$10,000
Canada Manitoba 7% Dec 2021 C$10,000 B2C; accommodation sharing
Canada Quebec 9.98% Jan 2019 C$30,000
Canada Saskatchewan 6% Jan 2019 Nil for non-residents
Mexico 16% Jun 2020 Nil
United States Up to 10% 2018+ Varies by state



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