The Mexican government has just made effective the entry into force of new taxes for products imported through digital platforms. The Tax Administration Service (SAT) published the general rules for Foreign Trade that increase by 19%, as of January 1, the taxes on products arriving from countries without a trade agreement, including China.
Among the main affected are Shein and Temu, giants in the retail market, and with a strong share of the Mexican market. Amazon and Walmart, for example, will also be affected, however, the American companies will benefit from the USMCA, the trade agreement signed between Mexico, Canada and the United States and the tax will be 17% on products whose value is between 50 and 117 dollars. In the case of products between 1 dollar and 50 dollars, the 19% tariff will be maintained.
The authorities have explained that the measure will strengthen the “fight against abusive practices”, since until last year there was a gap and countries without a trade agreement were not obliged to pay duties on goods of these values. Internet trading platforms must register in the Federal Registry of Taxpayers (RFC) and pay VAT on purchases that are imported products and whose income is deposited abroad, according to what is cited in chapter 12 of the Tax Code, published in the Official Journal of the Federation. These companies must also process the electronic signature (e.firma) in the SAT, provide a tax address and appoint a legal representative in the country.
The decision of the Mexican Government will affect platforms that provide other types of services, grant lodging or the temporary use of goods through digital platforms. Attention, Uber, Airbnb and other similar applications. They will also have to register in the RFC and comply with the payment of VAT and Income Tax (ISR), as well as issue invoices to whoever requests it.
The new measure comes amid new tax guidelines and the need to increase tax collection in Mexico. The decision is accompanied by another 35% tariff that will be imposed on imported textile products. This was announced by the Secretary of Economy, Marcelo Ebrard, last December. The policy will remain in force until 2026 and is the first lock imposed by the Sheinbaum Government on the large Chinese giants of online commerce.
The objective is to kill three birds with one stone. On the one hand, it favors the production of the Mexican textile industry, suffocated by low prices and cheap labor in third countries. On the other hand, it increases tax collection in a country that has one of the lowest collection rates in the OECD and, finally, it sends a conciliatory message to the next Government of Donald Trump, who threatened to raise tariffs on imports from Mexico by 25% if the Sheinbaum Government did not further curb migration to the United States. The move eases trade with USMCA partners while distancing itself from China.
Source: elpais
