As of June 1, 2020, if you obtain income through a digital platform for providing services or selling goods through a digital platform, you will be subject to income tax withholding on the income you receive from such activities.
If you are currently paying taxes as an individual with a business activity or under the tax incorporation regime (RIF), then you must comply with new tax obligations.
Who is required to pay taxes?
Individuals with business activities that sell goods or provide services through the Internet, by means of technological platforms, computer applications and similar, are obliged to pay ISR tax.
The Value Added Tax Law (2019) details that digital services will be those that charge a fee for the intermediation between third parties offering goods or services and the plaintiffs (section II of Article 18-B). For example, platforms such as Amazon, Mercado Libre, Ab&b, Uber, Didi, among others.
This does not apply in the case of intermediation services that have as their object the disposal of used personal property.
Under what regime should you pay taxes?
The reform to the LISR adds a particular regime for individuals with business activities that dispose of goods or provide services through the Internet, through technological platforms, computer applications and similar.
As a result, the payment of ISR is no longer possible through the RIF, and these taxpayers must adhere to the provisions established in the Law.
Therefore, you must file the notice of update of economic activities and obligations as from June 1, 2020, date in which the tax reform came into effect.
However, if you belong to the RIF, you may continue to pay taxes in the RIF for income other than that obtained by digital platforms.
What about Value Added Tax?
The withholding will be 50% on 16% of the tax, that is, 8%. Individuals with business activities that sell goods or provide services through digital platforms and that make the direct collection from the acquirer, must submit their monthly return, which is considered a final payment, applying the rate of 8% VAT. This is done through the platform “Declaration of final payment of VAT for individuals for direct collection of transactions carried out through technological platforms”.
This obligation must be fulfilled before the 17th day of the month immediately following the month in which the payment is due.
What is the recommendation to pay the fair?
First of all, if you are not registered with the SAT, you must register with the Federal Taxpayer Registry (RFC). Or, you must file with the SAT, the notice of update to business activities that sell goods or provide services through the Internet, through technological platforms, computer applications and similar.
In addition, you must provide your RFC to the digital platform where you sell your products, otherwise they will retain 20% directly. On the other hand, if they have your data, they will retain you according to the amount of your income.