Mexico: Implemented decree introducing blocking mechanism for foreign digital service providers for not complying with VAT obligations
Description
Implemented decree introducing blocking mechanism for foreign digital service providers for not complying with VAT obligations
On 1 January 2021, the decree amending part of the Mexican Tax codes was implemented. 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
legislature
Government Body
parliament
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