Mexico: Adopted decree introducing blocking mechanism for foreign digital service providers for not complying with VAT obligations

On 20 October 2020, the decree amending part of the Mexican Tax codes was adopted by the Mexican Parliament. The decree introduces a mechanism for tax authorities to block internet access to foreign digital service providers which do not comply with the application of the 16% VAT on digital services. The concessionaires of public telecommunications networks that do not comply with the order to block access to such providers shall be fined $500'000 to $ 1'000'000. The Decree will be implemented on 1 January 2021.