Mexico: Tax on digital platforms for distribution and delivery of goods and food (Mexico City)

Tax to be imposed on digital platforms for distribution and delivery of goods and food in Mexico City

Tax to be imposed on digital platforms for distribution and delivery of goods and food

Mexico City’s legislative body on 15 December 2021 approved a tax bill to impose a monthly tax on individuals or entities that operate, use, and administer applications or computer platforms that are used for the distribution and delivery of goods (including food and meals).

Digital platforms subject to the tax could be fixed or mobile devices, provided they allow users to contract for the delivery of packages, food, provisions or any type of merchandise and when the delivery is made within the territory of Mexico City.

The rate of tax is set at 2% of the total collection with regard to the deliveries made. The tax is to be remitted to the government no later than the 15th day of the month following the month of the delivery. The number of monthly deliveries is to be reported.

The tax is not to be included in the total cost paid by customers and is not to be charged to third-party bidders or on any other third party that delivers packages, food, provisions or any type of goods. Rather, this tax is to be a direct tax on digital platforms and not one that is indirectly passed on to consumers.

KPMG observation

Tax professionals have observed that this tax appears to be contrary to a recent agreement reached by more than 130 countries (including Mexico) that they would not impose digital taxes unilaterally (pending resolution of the Pillar One arrangement).

Taxpayers potentially affected by this tax need to evaluate whether there are possible challenges and whether a constitutional review is warranted.

Read a December 2021 report (Spanish) prepared by the KPMG member firm in Mexico


For more information, contact a tax professional with the KPMG member firm in Mexico:

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

 

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