Expansión: Will You Pay Taxes to the SAT on Digital Payments? What You Need to Know About the Bill

The proposed Digital Economy Law for Digital and Electronic Payments has raised questions among consumers and businesses about a possible tax on paying electronically. The bill does not introduce any new tax on these payment methods: its goals are to promote digital payments, accelerate financial inclusion and support the formalization of micro, small and medium-sized businesses and their access to credit.

If approved, using a debit or credit card or paying by bank transfer, wallets such as Apple Pay or Google Pay, QR codes or NFC devices will not trigger any additional tax charges. Authorities also stated that the bill does not change the legal framework that already governs the relationship between the SAT and the Financial Intelligence Unit on one side and financial institutions on the other.

The taxes that do apply

Consumption taxes remain in force. Baker Tilly Mexico Tax Partner Margarita Medrano explained that the purchase and sale of goods and services is subject to Value Added Tax (VAT) at a 16% rate nationwide and 8% in the northern and southern border regions.

On top of that is the IEPS or Special Tax on Production and Services, applied through specific fees or percentages depending on the product, such as gasoline, soft drinks, juices, cigarettes and high-calorie foods.

The trail left by digital payments

Even without a new tax, digitalization has a side effect: every electronic payment leaves a footprint in the financial system that the authority can review. During an audit, the SAT can cross-check that information against the taxpayer's accounting records as well as tax returns and bank statements.

Formality and growth for businesses

For the fintech sector, the challenge is making formal, digital operations more attractive than informality. According to the Mexican Fintech Association, businesses with point-of-sale terminals sell around 20% more than those without them.

For companies, this means that the consistency between their digital collections and their accounting will become increasingly important in the face of tax audits.

At Baker Tilly, we help individuals and companies meet their tax obligations and prepare for reviews by the authorities, with clear and timely information.

Article originally published in Expansión, by Dainzú Patiño.