Mexico: Registration reminder for foreign providers of digital services

Mexico: Foreign providers of digital services

The tax authority on 28 February 2021 published a list of foreign providers of digital services that are registered for tax purposes in Mexico.

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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. With the introduction of these—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), must obtain a tax identification number, must comply with certain other formalities, and must collect VAT. Also under these rules, the tax administration is required to publish during the first 10 days of January, March, May, July, September, and November of each year, the list of foreign residents providing digital services that are registered in Mexico. Read TaxNewsFlash

If the foreign service provider is not registered, the burden to remit VAT shifts to the recipients of the digital services. The recipient must pay the VAT through a reverse-change mechanism.

Beginning 2021, the tax authority can temporarily block internet access to foreign digital service providers that are not registered, do not appoint a legal representative or do not provide a Mexican domicile. This sanction also applies when the foreign resident fails to file three consecutive tax returns or two quarterly information returns.

Read the list of the 86 foreign digital service providers registered in Mexico as of 28 February 2021. 

KPMG observation

Entities providing digital services in Mexico need to determine if they are subject to the registration rules and need to register and comply with 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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