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.
Digital platforms in Mexico must withhold 100% of the applicable VAT on sales when funds are paid to non‑resident suppliers.
In Argentina, payment intermediaries must withhold VAT at the standard rate of 21% on B2C transactions to foreign digital service providers.
Yes, in some countries withholding VAT can fully replace VAT registration for non‑resident suppliers, particularly where platforms or intermediaries capture payment and transaction data.
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Fonoa · 9 days 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.
VATabout · 14 days ago
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.
Edicom Group · about 18 hours ago
Chile’s Internal Revenue Service (SII) has issued new resolutions in 2025 that expand electronic invoicing obligations. The updates require digital platform operators to verify seller registrations, mandate electronic receipts for all in‑person sales, and introduce a Delivery Note Registry with detailed transport information. Electronic invoicing has been mandatory since February 1 2018, and the SII continues to enforce validation and acceptance timelines.
Advisor · 3 days ago
The Canada Revenue Agency has reversed its long‑standing position, declaring that trailing commissions paid by fund managers to dealers are taxable under GST/HST, effective July 1. Dealers and advisors may need to register for GST/HST if their taxable revenues exceed $30,000 over four consecutive quarters, and will have to adjust accounting systems to collect and remit the tax. The CRA will publish a formal technical interpretation in the coming weeks, clarifying the taxable status of trailing commissions and confirming that upfront commissions remain exempt.
VatCalc · 3 days ago
Brazil’s 2026‑2032 VAT reform introduces a targeted “Cashback” mechanism that refunds part of the new CBS and IBS taxes to low‑income families. The scheme will reimburse 100% of CBS and 20% of IBS on essential utilities (draft figures) and is expected to start in 2027 with a phased rollout. Refunds will be transferred electronically to families’ bank accounts linked to their CPF.
Bloomberg Tax · 4 days ago
The Nicaraguan Directorate General of Revenue issued Notice No. 010-01-2026 on Jan. 16, 2026, setting a Jan. 20 deadline for large taxpayers (GRACOS) to pay advance VAT for the first half of January. Failure to meet the deadline could impact tax solvency. This guidance applies to large taxpayers in Nicaragua.
