Mexico: Announced decree introducing blocking mechanism for foreign digital service providers for not complying with VAT obligations
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Description
Announced decree introducing blocking mechanism for foreign digital service providers for not complying with VAT obligations
On 8 September 2020, a decree amending part of the Mexican Tax codes was announced by the Mexican Department of Finance. 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.
Original sourceScope
Policy Area
Taxation
Policy Instrument
Indirect taxes
Regulated Economic Activity
cross-cutting
Implementation Level
national
Government Branch
executive
Government Body
central government
Complete timeline of this policy change
Hide details
2020-09-08
under deliberation
2020-12-08
adopted
Key regulatory dimensions
Regulated subjects
The businesses, government agencies or individuals affected by this policy or regulatory change.
producer / supplier
1
Type
Private organisation
Economic activity
cross-cutting
Category
All
2
Type
Private organisation
Economic activity
infrastructure provider: internet and telecom services
Category
All
Policy change by business practice
The detailed activities within the scope of this policy or regulatory change.
digital good (any form): sale
Regulatory tool
Subordination under sales, use or value-added tax
Sanctions
Website or service access blocking
Regulated subjects
1
Regulatory tool
Sanctions
Fine
Regulated subjects
2