Mexico 2026 Tax Reform: Key VAT & Digital Rules

January 11, 2026

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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

What is the 2026 Miscellaneous Tax Resolution in Mexico?

The 2026 Miscellaneous Tax Resolution is the operational implementation of Mexico’s 2026 Tax Reform. It translates legislative changes into concrete rules for both direct and indirect taxes, including VAT.

How does the reform affect VAT on insurance claims?

Under the new rules, VAT is considered non-creditable when insurance claims are settled in kind, meaning through goods or services rather than cash payments.

What are the new digital reporting obligations for platforms?

Digital platforms must give the Tax Authority online access to transactional databases, recording detailed information on services, customer IDs, prices, VAT, payment methods, and CFDI references.

How must intermediaries report supplier data?

Platforms acting as intermediaries must upload detailed supplier data daily, including tax IDs, banking info, withheld taxes, and location data. This information must be retained for at least five years.

What change affects Collective Financing Institutions and VAT withholding?

The reform removes the rule allowing IFCs to substitute legal entities in VAT withholding. Now, the original payers must directly withhold and remit VAT on interest paid to individuals.

What is the overall goal of the 2026 tax reform for VAT?

The reform aims to increase digitalization, transparency, and direct accountability, strengthening real-time oversight of VAT compliance across Mexico.

VAT Compliance and Reporting

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