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México announces tax on digital services

Monday, February 17, 2020


A 16 percent value-added tax will be tacked onto digital services in Mexico starting on June 1. The law will apply to all services, even B2B transactions for all online applications, including video, audio streaming, images and education.

There are stipulations for what constitutes a Mexican recipient to determine eligibility for the tax. The person must be a resident of Mexico, and payment must be made through an intermediary, PYMNTS.com reports.