Mexico 2026 Tax Reform: Key VAT & Digital Rules

The Miscellaneous Tax Resolution for fiscal year 2026 and its key annexes were published in late December, marking the formal implementation of the 2026 Tax Reform at an operational level, translating legislative changes into concrete compliance rules. 

The reform brings many novelties for both direct and indirect taxes, including VAT. Overall, the resolution reinforces the shift toward a more digital, data-driven tax system, with electronic processes becoming the default channel for interaction between taxable persons and the Tax Authority.

Key Changes Affecting VAT

As part of the changes to the Federal Revenue Law (LIF), when insurance claims are settled in kind, that is, through the direct provision of goods or services rather than cash payments, the VAT is considered non-creditable.

Furthermore, the reform requires digital platforms to grant the Tax Authority online access to their transactional databases. Moreover, taxable persons must ensure that detailed information on each transaction, including the nature of the service, customer identification where applicable, pricing and VAT breakdowns, payment methods, and CFDI references, is systematically recorded and accessible to the Tax Authority.

Digital platforms that act as intermediaries have obligations to provide detailed data on the underlying suppliers, including tax and personal identification details, banking information, withheld taxes, and location-specific data for lodging or import-related activities. Additionally, required data must be uploaded daily, retained for at least five years, and remain permanently available.

Also, the rule allowing Collective Financing Institutions (IFCs) regulated under the Law to Regulate Financial Technology Institutions to substitute legal entities in fulfilling VAT withholding and remittance responsibilities on interest paid to individuals has been removed. The decision to eliminate this facilitation shifts the compliance burden back to the original payers, meaning that entities making interest payments to individuals must now directly withhold and remit VAT themselves.

Conclusion

The 2026 Miscellaneous Tax Resolution marks a clear move toward greater digitalization, transparency, and direct accountability in Mexico’s tax system. By tightening VAT rules, the 2026 tax reform particularly aims to reinforce real-time oversight.

Source: KPMG, VATabout