Mexico: List of 201 registered foreign providers of digital services (as of 31 December 2023)

The tax administration on 18 January 2024 published a list (Spanish) of the 201 foreign providers of digital services that are registered for tax purposes in Mexico as of 31 December 2023.

With the most recent report, three new entities were registered in the last two months, while there were no entities deregistered.

VAT requirements

The digital services tax rules introduced value added tax (VAT) obligations regarding digital services provided through an online platform. With the introduction of this requirement—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)
• Appoint a legal representative
• Collect VAT
• Comply with certain other formalities
• Intermediaries of digital services should withhold VAT and IT from Mexican individuals and issue e-invoicing of withholding (CFDI de retención)

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.

The tax administration 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.

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 actions by the tax administration.

For more information, contact a KPMG tax professional in Mexico:

Antonio Zuazua | azuazua@kpmg.com.mx