Type: Legislation
As of 11 October 2024, Mexico’s tax authority (SAT) requires digital platforms and marketplaces to withhold VAT on goods sold by non-resident sellers. This VAT withholding is distinct from existing VAT requirements on digital services. Platforms must obtain a declaration from sellers regarding their foreign bank accounts and consent for VAT withholding. Withheld VAT must be remitted monthly to the SAT via a specific VAT Withholdings Declaration, with sellers receiving a CFDI receipt detailing withheld amounts. This policy aligns with similar VAT withholding obligations for digital platforms in regions such as the EU and South America.
Effective date: October 11th, 2024
