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Daily Tax Report: International

Mexico Forges Ahead on Plan to Tax Digital Services (1)

Oct. 18, 2019, 1:33 PMUpdated: Oct. 18, 2019, 7:18 PM

Mexico took another step toward improving its taxation of the digital economy with legislation that would require companies to collect value-added tax on digital services.

Mexico’s lower house of Congress Oct. 18 approved the legislation—with 300 votes in favor, 127 against, and 2 abstentions—that would require companies providing digital services in Mexico to create a registry of their clients with Mexico’s tax authority—known as the SAT. Companies would report how many transactions users make every three months, levy value-added taxes on these transactions, remit the tax to authorities, and register a local legal representative to create a domicile in the...

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