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Proposed VAT tax

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rancher007
  7/24/2019 14:52 EST

Has anyone been hearing about the proposed VAT (tax) of 16 % being implemented on Internet purchases. Amazon etc.

Cozumeldeb
  7/24/2019 15:43 EST

UGH! Hope not.

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RVGRINGO
  7/24/2019 16:44 EST

Why shouldn't it be charged? The 16% tax is charged on most all products sold in Mexico, and is generally part of the price indicated; unlike in the USA, where the sales tax is added at checkout.

rancher007
  7/24/2019 23:43 EST

RVGRINGO
The news article I read stated that this new 16% VAT tax was to be implemented up an above any taxes now charged an to begin in Jan. 2020. My only reason for the post was to see if anyone new anything about this news or varify

Retiree2
  7/25/2019 06:08 EST

https://www.amazon.com.mx/gp/help/customer/display.html?nodeId=201895760



"About VAT on products sold by Amazon

VAT is charged (if applicable) to orders that Amazon sells in Mexico.

Under Mexican law, Amazon is obligated to charge VAT for all taxable physical items sold by Amazon Mexico and delivered to destinations within Mexico.

The recommended retail price (RRP) and / or the price shown for products sold by Amazon already include VAT. The final price during the purchase completion process will reflect the applicable VAT for your order."

IVA taxes [ VAT] are included in the price listed on amazon.com.mx. They always where as far as I know.

Retiree2
  7/25/2019 06:10 EST

https://www.google.com.mx/amp/s/www.forbes.com.mx/diputados-de-morena-quieren-poner-iva-a-las-compras-en-amazon-uber-y-airbnb/amp/

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Retiree2
  7/25/2019 06:15 EST

Google Translation:

"Morena deputies want to put VAT on purchases on Amazon, Uber and Airbnb

?

Forbes Staff> Categories: Forbes Politics July 24, 2019

Reuters.- The morenista deputy Alfonso Ramírez Cuéllar, in coordination with other legislators, plans to present a bill in Congress to tax purchases made on Amazon, Uber, Airbnb and other platforms, to fill the revenue hole that Pemex will leave in Public finances

Ramírez Cuéllar, president of the Budget Committee in the Chamber of Deputies, said in an interview with Reuters that applying VAT to digital platforms in Mexico would help balance public finances.

“We believe that applying VAT (Value Added Tax) to purchases on platforms is the best way to do it. There are very successful experiences with this in Latin America, ”he said.

Asked if the project would cover the operations of Amazon, Uber and Airbnb, the deputy said yes and added that it was not drafted in coordination with the government, but had the support of other legislators.

Morena and her allies have a majority in the Chamber of Deputies.

If the proposal is approved, Ramírez Cuellar said that e-commerce companies, shared transport platforms [ Uber] and rental houses [AirBnB] would be subject to the standard VAT of 16% charged to other purchases in Mexico.

He added that the project will be presented during the next regular session, which starts on September 1, and hopes that it will become law at the beginning of next year. The Ministry of Finance did not respond to a request for comment."

Retiree2
  7/25/2019 06:34 EST

Note:

amazon.com.mx has always by Mexican tax laws had sellers on their site charge/collect IVA taxes. Now if the proposed tax law wants Amazon to pay another 16 percent IVA tax on their services for every purchase it would be collecting 32 percent IVA tax from buyers. Typical Morena Party stupid idea. They are a sea of incompetence and made up stuff. Charging AirBnB users IVA is what other countries do. Charging Amazon users 32 percent IVA - double the countries VAT tax isn't. More dumb stuff from the Morena Party. It never ends with these guys.

RVGRINGO
  7/25/2019 15:56 EST

Just as I thought; probably a publicity tactic by politicos without good thinking skills.

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