United Nations Economic Commission for Latin America and the Caribbean (Cepal) considered that Mexico could obtain revenues valued in USD 178.8 million per year if it charges VAT to digital platforms and charges 3% for intermediation services from platforms like Netflix and others.
The entity established in its report ‘Fiscal Panorama of Latin America and the Caribbean 2019’ that revenues for Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Peru, Uruguay and Mexico could reach USD 580 million annually. ‘Failure to take the economy digitalization tax challenges over means to renounce to a significant amount of fiscal resources, which will grow as the new digital economy business models advance in its consolidation’, said Cepal in its report.
According to the organization, of the USD 580 million collected annually from the countries mentioned, USD 572 million would come from VAT, and the remaining USD 8 million from the digital platforms tax. The Mexican Tax Administration Service (SAT) reported in February that it is working on a strategy to increase tax collection in the country. Cepal also confirmed that Mexico is the country where less taxes are paid from the 36 Economic Co-operation and Development Organization (OCDE)’s countries.