Mexico’s 2026 Tax Reform introduces significant VAT changes, including non-creditable VAT on insurance claims settled in kind and new digital reporting obligations for platforms. Digital platforms must provide online access to transactional data, upload detailed supplier information daily, and retain records for five years. The reform also removes the ability of Collective Financing Institutions to substitute legal entities for VAT withholding on interest paid to individuals.
VAT is considered non-creditable when insurance claims are settled in kind, meaning through goods or services rather than cash payments.
Digital platforms must grant the Tax Authority online access to their transactional databases and record detailed information on each transaction, including service nature, customer ID, pricing, VAT breakdown, payment methods, and CFDI references.
They must upload detailed supplier data daily, including tax IDs, banking info, withheld taxes, and location data, and retain it for at least five years.
The reform removed the rule allowing IFCs to substitute legal entities for VAT withholding on interest paid to individuals, so original payers must now directly withhold and remit VAT.
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WTW · about 3 hours ago
Mexico amended its Federal Revenue Law on 7 November 2025, removing insurers’ ability to recover 16% VAT on goods and services used in covered major medical treatments. The change is retroactive from 1 January 2025 and is expected to raise major medical costs by 10‑12%, potentially increasing loss ratios by 8‑12% and overall captive costs by over 20%.
Lockton · 20 days ago
Mexico has enacted a tax reform that removes VAT creditability for insurers on direct payments for goods and services used to settle insurance claims. The reform, effective 1 January 2026 and retroactive to the 2025 fiscal year, turns VAT into a non‑recoverable cost, potentially raising premiums by 8‑10% for medical and auto insurance. Insurers must adjust their claim settlement and pricing strategies accordingly.
VATabout · about 1 month ago
The article explains how withholding VAT regimes are used in Mexico and Argentina to collect VAT on digital services supplied by non‑resident providers. It details the rates and responsibilities of platforms, intermediaries, and customers, and notes that withholding can sometimes replace registration for foreign suppliers.
Fonoa · about 1 month ago
Mexico’s tax authority, SAT, has issued Rule 2.9.21 under RMF 2026, mandating digital platforms to provide real‑time, permanent online access to transaction records. The rule requires next‑day data availability, a five‑year searchable archive, and a formal request by April 30 2026, with detailed data obligations for both service providers and intermediary platforms.
VatCalc · about 4 hours ago
British Columbia will broaden its Provincial Sales Tax (PST) to include a range of professional services from 1 October 2026, maintaining a 7% rate that, combined with the federal 5% GST, brings the total tax on most supplies to 12%. For architectural, engineering and geoscience services, PST will apply to only 30% of the purchase price. Service providers in the new scope must register for PST and prepare to charge, collect and remit the tax, with further administrative guidance to follow.
VATCalc · about 23 hours ago
Argentina’s tax authority ARCA has extended mandatory e‑invoicing to financial institutions, insurance companies and credit card providers effective 1 July 2026, introducing a monthly electronic settlement system and pre‑filled VAT returns. The General Resolution 5824/26 also plans to add prepaid health plans and educational institutions by July 2027, urging businesses to prepare early for the expanded e‑invoicing infrastructure.
