Daily Tax Report ®

Tech Group Asks Mexico to Delay Implementing Digital Taxes

May 28, 2020, 11:38 PM

A Latin American tech group representing Airbnb, Amazon, Google, and e-commerce giant Mercado Libre is asking the Mexican government for a five-month delay in implementing a digital services tax.

Mexico’s tax authority, known as the SAT, extends the country’s 16% value-added tax and income tax to digital services provided in the country, effective June 1.

  • The group said in a statement to Mexico’s Finance Ministry that the tax as currently written could result in excess charges for consumers and double taxation.

  • The group noted that the SAT has yet to release guidance tailored for companies other than ride-hailing services...
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