Uber, Netflix, Spotify and the like that incur in the omission of their tax obligations in Mexico, could be entitled to a blockage of internet access to their services, according to the Tax Miscellany that was presented for 2021.
Digital platforms, such as Uber, Netflix, Spotify and similar, that incur in the omission of their tax obligations in Mexico, could be entitled to a blockage of internet access to their services , according to the Tax Miscellany that was presented for the 2021.
The document, prepared by the Ministry of Finance and Public Credit ( SHCP ), said that although as of June of this year some provisions regarding Value Added Tax (VAT) came into force for digital platforms, which do not reside in the country, the measure has not been sufficient to achieve the desired compliance.
Given this situation, it is considered necessary to establish a control mechanism that allows the tax authority to act when the taxpayer is reluctant to comply with their tax obligations.”
In this sense, the platforms will be blocked in case they do not withhold and pay the VAT to the Tax Administration Service (SAT); if they do not register on the taxpayer registry; they do not designate a legal representative in Mexico; they do not register a tax domicile; do not process the e. signature; and / or omit the presentation of the informative returns.
“This measure at no time affects the principle of neutrality of digital content transmitted over the internet since the rule does not allow the tax authority to review the content of the information, it only allows it to verify whether or not the taxpayer is registered. , whether or not an address and legal representative have been designated, and whether or not they have processed their electronic signature and that, in case of omission, it is a strictly administrative breach ”.
Right of audience
To order the temporary blocking of access to the digital service, an order must be issued to the concessionaires so that they, within a maximum period of five days, carry out the blocking.
The platforms will have the right to a hearing prior to the issuance of the blocking order. To do this, the SAT must inform the taxpayer about the breach, either by contacting him directly or through the Official Gazette of the Federation (DOF).
As of the notification, the taxpayer will have a period of 15 days to comply with the omitted obligations, or else, provide the documentation to disprove the facts and that can be assessed by the authority.
More platforms stick
Platforms such as Zoom, Coursera, Spotify, HBO, Roku, and 17 other platforms were registered with the Federal Taxpayers Registry (RFC) of the SAT to comply with the tax provisions in force as of this year.
The list was published through the DOF and is made up of a total of 35 platforms, of which 13 had already been registered and published in July.
“The SAT will publish both on its Internet Portal and in the DOF, bimonthly no later than the first 10 days of January, March, May, July, September, and November of each year, the list of residents abroad without establishment in the country that provide digital services to receivers located in the national territory and that are registered in the RFC ”, issued the Miscellaneous Fiscal Resolution for 2020.