Mexico: Tax Administration Service adopted second resolution of modifications to fiscal resolution for 2024 including withholding tax

On 7 October 2024, the Mexican tax administration adopted the second resolution of modifications to the fiscal resolution for 2024. It clarifies the definition of digital intermediation services under the Mexican value-added tax law. It applies to non-resident digital platforms that facilitate transactions between sellers and buyers in exchange for payment or compensation. It specifies that platforms qualify as intermediaries even if they present themselves as mere online stores or aggregators without direct involvement in negotiations or pricing. As a result, such platforms must comply with value-added tax obligations, including tax withholding when applicable. It requires platforms to withhold 100% of VAT on goods sales when payments go to foreign bank accounts.