- Mexico ends VAT registration path for non-resident digital providers without a physical presence
- New rule requires proof of domicile for tax registration
- Acceptable documents include utility bills or Mexican bank statements in the entity’s name
- Foreign providers previously used a simplified registration framework
- New rules require in-person procedures and local documentation
- Foreign entities without local establishment cannot update VAT registration digitally
- Policy disrupts VAT compliance for non-resident platforms
- Providers may need local services to produce proof of address
- Some may suspend compliance or seek costly workarounds
- Industry urges SAT to clarify procedures for digital service providers
- Move seen as a barrier to non-resident VAT registration affecting tax collection and market access
Source:
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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