Amazon Prime Video not to increase its monthly subscription by VAT collection on OTTs in Mexico

After the announcement of the increasement to be applied on Netflix monthly subscriptions in Mexico due to VAT collection, Amazon Prime Video reported that its subscribers will not be affected by the measure, since the tax value has already been included in the monthly subscription paid by their customers. VAT collection from digital platforms will be applied Mexico and Chile from next June 1st.

‘Amazon Mexico has been collecting VAT from Prime members since we launched the service, in June 2017. Therefore, members of the country will not be affected by the new tax regulations’, the company reported to Forbes Mexico. ‘We take all possible measures to make sure that we fulfill all the rules and regulations in the countries in which we operate. We work closely with the Mexican authorities to ensure that all Amazon services meet tax requirements’, the company completed.

The announcement comes days after the launch of the Prime Video Store in Mexico, a TVOD platform that allows Amazon customers to buy or rent movies. Its arrival in Mexico took place shortly after the platform was launched in Spain, France, Italy, Canada and Australia. The Prime Video Store joins Amazon’s SVOD OTT and its Prime Video Channels.