Value Added Tax (VAT) Law


Regarding VAT, the following reforms are proposed:

Digital Services

  • Eliminate the exclusion that indicates that digital intermediation services whose purpose is to dispose of used movable property are not subject to the value added tax; by eliminating the second paragraph of section II of article 18-B
  • Establish for residents abroad without establishment in Mexico, that they provide the digital services referred to in sections I, III and IV of article 18-B (download or access to images, films, text, information, video, audio , music, games, getting ringtones from mobile phones, viewing online news, weather forecasts and statistics; online clubs and dating sites, as well as distance learning or quizzes or exercises), the ease of not complying with the obligations set forth in article 18-D (register in the RFC, designate a legal representative, provide an address in national territory, offer together with the price of its services the VAT expressly and separately, issue and send receipts, etc.), provided that the aforementioned digital services are provided through digital mediation platforms referred to in section II of article 18-B and the latter make them withhold VAT
  • Establish, in turn, that the digital mediation platforms that provide their services to residents abroad referred to in the previous point, will withhold 100% of the VAT charged to them, and will have the obligation to issue and send the receipts corresponding to the recipients of digital services, but in turn it is proposed to exempt them from providing the SAT with the information referred to in section III of article 18-J with respect to the aforementioned residents abroad in whose operations they have acted as intermediaries.
  • Incorporate the option for digital mediation platforms of Publish on its website, application or platform, the price at which the goods or services are offered by the disposers, service providers or grantors of the temporary use or enjoyment of goods, in which they operate as intermediaries, without manifesting VAT in the form expressly and separately, as long as the prices include VAT and are published with the legend “VAT included”.
  • Incorporate into the Law a control mechanism, as well as the consequences of non-compliance with the obligations set forth in the VAT Law, by residents abroad without an establishment in Mexico, which includes:
    • The cases of breach of obligations, in which the temporary blocking of access to the digital service to be carried out by the concessionaires of public telecommunications networks in Mexico (addition of article 18-H BIS)
    • The procedure for the relief of the right to a hearing prior to the issuance of the blocking order (addition of article 18-H TER)
    • The obligations that the concessionaire of public telecommunications networks in Mexico who is ordered to temporarily block (addition of article 18-H QUATER)
    • The obligation of the SAT to publish on its page and in the Official Gazette the name of the taxpayers who will be blocked, as well as to issue the unblocking order when the taxpayer complies with their obligations (addition of article 18-H QUINTUS)

Exemption to professional medical services provided through private welfare or charitable institutions

Add to the exemption from paying VAT, the provision of professional medical services, provided by individuals through private welfare or charitable institutions (reform of section XIV of the VAT Law)