Amazon and Twitter join the list of companies registered in the RFC that have the obligation to pay VAT for services provided in Mexico with the SAT.
The Tax Administration System (SAT) is the government institution in charge that individuals and legal entities contribute what corresponds to tax and customs provisions, having as its main function to generate the tools and strategies for taxpayers to comply with their contributions, as well as the companies. Depending on the business of the company, its personnel and their income, they could provide different accounts to the SAT, but generally each company must pay 30 percent of the income tax, 10 percent of profits and 10 percent of PTU (participation of workers in utilities).
This was previously directed mainly for Mexican companies and some international ones, however, recently some changes have been made within it, since some were not as such registered in previous years, mainly foreign digital platforms.
In accordance with The financial, on Mexico there are 14.4 million app users, of which 12.5 offer their use for free and 1.9 million are paid, so these companies generate revenues of around 27 million dollars.
These companies and platforms have shown importance over time, especially in times of pandemic, since there was a noticeable increase in users compared to past years.
In accordance with Forbes, the decrease in social mobility caused by the Covid-19 pandemic, resulted in an increase in sales on online platforms; Only in Mexico, these registered an increase of approximately 81 percent during 2020, that is, 316 billion pesos, 9 percent of income in the country’s retail sector.
The use of digital platforms not only benefited online sales, but social networks also had a considerable increase; According to the Digital 2021 study carried out in a joint work by We Are Social and Hootsuite, Mexico showed a loss of 407 thousand connections, having a decline in users of 0.4 percent, while at the same time it increased its percentage of Internet users that rose by 4 percent, adding 3.5 million new users, mainly seen in social networks since the different platforms such as Facebook and Twitter had a growth of 12.4 percent; so they have shown their importance for the country.
Since 2020, the different large digital platforms have gradually been added to the Federal Taxpayers Registry (RFC) of the Tax Administration Service (SAT), having the obligation to pay VAT and the withholding of income tax from workers.
On November 10, the Ministry of the Interior (SEGOB) officially showed the list of Digital Service Providers Registered in the Federal Register of Taxpayers on the Value Added Tax Law in force, where we already see some of the tech giants dominating the world market; In the list we see different recognized brands that must now comply with the SAT (122 companies), in addition to Amazon and Twitter, such as:
- Bloomberg LP
- Coursera, INC.
- Domestika, Inc.
- Etsy, INC.
- Ebay Marketplaces Gmbh.
- Fiverr International Pty LTD.
- Fitch Solutions, INC. Linkedin Ireland Unlimited Company
- Microsoft Corporation
- Match.Com Global Services Limited
- The Mind Hub Company, SL
- Riot Games, INC.
- Twitch Interactive, INC.
- Uber Motorbike BV
- Wix.Com LTD
- Zoom Video Communications, INC.
To access the complete list you can access this link from the Interior Ministry.
This type of Large digital companies such as Amazon and Twitter obtained their RFC this year to keep up with the payment of VAT for the provision of services, as well as their respective payments before the SAT; According to Information from the Treasury, it refers that last year the digital platforms registered income from the payment of VAT and ISR for 8,663 million pesos, a figure that will increase considerably over time.
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