The Treasury explained that Netflix International BV (Netflix) will no longer appear on the list of foreign digital service providers.
The Ministry of Finance reported that Netflix has chosen to settle in Mexico, which implies that this platform will pay taxes like any other business with residence in the country.
In addition to complying with its VAT tax obligations, Netflix will declare its income and pay the corresponding income tax, for which it will be audited like any other taxpayer residing in the country.
In a statement, the Treasury explained that Netflix International BV (Netflix) will no longer appear on the list of digital service providers, residing abroad, registered in the Federal Taxpayers Registry; and explained that this does not mean that said platform will stop paying VAT for the provision of digital services in Mexico.
“The digital platform regime is a mechanism that facilitates and simplifies compliance with the VAT payment of users located in the country who contract digital services from platforms that do not have permanent residence in Mexico,” the agency details.
In Mexico, the contracting of a digital service is taxed with VAT, which is charged by the platform and delivered to the SAT, otherwise, the consumer should pay this VAT directly to the SAT.
At the beginning of the year, Netflix told Forbes Mexico that it will invest 300 million dollars (million dollars) in the country, with the aim of making, on average, 50 original productions , whether local or global, filmed in Mexico, to be released in 2021.
During 2020, the streaming giant earmarked $ 200 million for it.
Francisco Ramos, Vice President of Original Content for Latin America at Netflix, explained that our country has undergone a boom of great relevance for the content industry, with contributions that have been enjoyed in different markets.
“Mexico is a creative capital of great importance for Latin America and the world. We are seeing with enthusiasm how Mexican productions are enjoyed by millions of our members in countries like the United States, France and Brazil. That is why we are excited to continue investing in the Mexican audiovisual industry, ”he said.
Source: forbes.com.mx
