Foreign suppliers of digital services to customers located in Mexico are required by law to register at the tax administration of Mexico (SAT), charge VAT for the services that they provide to final consumers and issue the corresponding invoice to their customers. Taxpayers that do not comply with this mandate may be subject to sanctions from the SAT and the payments made to them will be subject to withholding. In order to enforce this mandate, the SAT is required by law to publish on a bi-Monthly basis, an official list of foreign suppliers that have already complied with the registration requirement mentioned before. That list should published in the months of January, March, May, July September and November, and can be found under the Oficio 700-04-02-00-00-2020-78.
MEXICO: SAT Publishes the List of Foreign Suppliers of Digital Services
Ramón Frias
July 14, 2020
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Author
Ramón Frias
Ramon is a Tax Counsel on the Regulatory Analysis team at Sovos. He is licensed to practice law in the Dominican Republic and is a member of the Dominican Bar Association. He has a Certificate Degree from Harvard University as well as a J.D. from the Universidad Autonoma de Santo Domingo. Ramon has written a number of essays about tax administration and has won the first prize in the international essays contest sponsored by the Inter American Center of Tax Administrations (CIAT). Prior to joining Sovos, Ramon worked for more than 10 years in the Department of Revenue of the Dominican Republic where he served as Deputy Director. He is proficient in French and Spanish.
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