Mexico’s 2026 Tax Reform introduces significant VAT changes, including non-creditable VAT on insurance claims settled in kind and new digital reporting obligations for platforms. Digital platforms must provide online access to transactional data, upload detailed supplier information daily, and retain records for five years. The reform also removes the ability of Collective Financing Institutions to substitute legal entities for VAT withholding on interest paid to individuals.
VAT is considered non-creditable when insurance claims are settled in kind, meaning through goods or services rather than cash payments.
Digital platforms must grant the Tax Authority online access to their transactional databases and record detailed information on each transaction, including service nature, customer ID, pricing, VAT breakdown, payment methods, and CFDI references.
They must upload detailed supplier data daily, including tax IDs, banking info, withheld taxes, and location data, and retain it for at least five years.
The reform removed the rule allowing IFCs to substitute legal entities for VAT withholding on interest paid to individuals, so original payers must now directly withhold and remit VAT.
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Lockton · 19 days ago
Mexico has enacted a tax reform that removes VAT creditability for insurers on direct payments for goods and services used to settle insurance claims. The reform, effective 1 January 2026 and retroactive to the 2025 fiscal year, turns VAT into a non‑recoverable cost, potentially raising premiums by 8‑10% for medical and auto insurance. Insurers must adjust their claim settlement and pricing strategies accordingly.
VATabout · about 1 month ago
The article explains how withholding VAT regimes are used in Mexico and Argentina to collect VAT on digital services supplied by non‑resident providers. It details the rates and responsibilities of platforms, intermediaries, and customers, and notes that withholding can sometimes replace registration for foreign suppliers.
Fonoa · about 1 month ago
Mexico’s tax authority, SAT, has issued Rule 2.9.21 under RMF 2026, mandating digital platforms to provide real‑time, permanent online access to transaction records. The rule requires next‑day data availability, a five‑year searchable archive, and a formal request by April 30 2026, with detailed data obligations for both service providers and intermediary platforms.
LinkedIn Article by Ryan · about 4 hours ago
The U.S. Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act, ruling that the President lacked authority to impose 25% tariffs on Mexico and Canada and 10% tariffs on China and other partners. The decision remanded the case and left importers without a remedy, prompting the administration to announce a new worldwide tariff under the Trade Act of 1974. Importers must seek refunds through Customs and the U.S. Court of International Trade.
Troy Media · 1 day ago
Canada’s federal government has announced a one‑time top‑up to the GST credit, rebranded as the Canada Groceries and Essentials Benefit, which will increase payments by 25 % for five years starting in July 2026. The benefit will extend to 500,000 new families, potentially helping up to 12.6 million Canadians, but eligibility thresholds are low, excluding many low‑income households. The article argues that these tweaks are insufficient and calls for a larger increase in the basic personal amount to provide broader relief.
Fiscal Solutions · 4 days ago
Brazil's new IBS/CBS/IS tax system now treats advance payments as taxable events, requiring businesses to issue a Debit Invoice (NF-e type 06) and report tax in the payment period. The final invoice must reference the advance payments via <gPagAntecipado> to offset tax already paid and avoid double taxation. ERP systems must support advance-payment tracking and the new invoicing requirements.
