Mexico: Fourth list of foreign providers of digital services subject to VAT (for 2020)

Mexico: List of foreign providers of digital services

The tax authority on 9 January 2021 published the fourth list of foreign providers of digital services that are registered for tax purposes in Mexico for 2020.

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The digital services tax rules introduced value added tax (VAT) obligations with regard to digital services provided through an online platform. Read TaxNewsFlash

With the introduction of rules for the tax treatment of digital services—effective 1 June 2020—foreign residents and companies without a permanent establishment in Mexico and that provide digital services to recipients located in Mexico must register with the taxpayer registry (Registro Federal de Contribuyentes—RFC), obtain a tax identification number, and comply with certain other formalities.

A provision of the VAT law in Mexico (Article 18-D, section 1) also establishes that the tax authority will disclose on its website and also by means of publication in the official gazette, a list of foreign residents that are registered in the RFC. The schedule for publishing this list is set out in the miscellaneous tax regulations of 2020 (rule 12.1.5) that provide the list is to be published bi-monthly (that is, once every two months, during the first 10 days of January, March, May, July, September, and November of each year). This list is relevant for recipients of digital services in Mexico because if a foreign provider of digital services is not registered in the RFC, the recipient of the digital services must consider that the services were imported and accordingly must directly remit the related amount of VAT. The first list was published in July 2020.

The tax authority on 9 January 2021 published the fourth list of registered foreign providers of digital services.


KPMG observation

Companies that provide digital services in Mexico need to be aware of the requirements to register and comply with the tax obligations to avoid potential sanctions.


For more information, contact a KPMG tax professional in Mexico:

Antonio Zuazua | +52 81 8122-1938 | azuazua@kpmg.com.mx

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