Published On: Fri, May 8th, 2020

Netflix Mexico to charge up to 16% more following tax hike

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Netflix has confirmed that it will be increasing the price of its intermediate and premium packages by 16 percent and those of its basic package by 8 percent to reflect the new government’s new value-added.

The new 16 percent VAT on over-the-top (OTT) providers of digital services approved last year has prompted the streaming giant to hike the price of its basic (SD) plan to MXN 139 a month from MXN 129, with the standard (HD) plan rising to MXN 196 a month from MXN 169 and the premium (UHD) plan to MXN 266 a month from MXN 229.

In a statement, the company said: “as reported in late 2019, the Mexican government is adding VAT to digital services like Netflix from 01 June 1,” adding that “we have started notifying our users that we will adjust our prices accordingly, while working to minimise the impact on our basic plan.”

In addition to OTT providers, the new VAT will also apply to transport and delivery services including Uber, Cabify and Sin Delantal as well as online e-commerce platforms such as Mercado Libre.




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