Mexico digital commerce businesses seek tax relief

Small businesses and entrepreneurs in Mexico are facing new financial challenges due to tax retention policies for digital sales. Starting in January 2026, sellers on digital platforms must surrender a portion of each sale for tax payments.

Nine business organizations, including the Asociación Mexicana de Venta Online (AMVO) and the Asociación de Emprendedores de México (ASEM), are calling on tax authorities to reduce these rates. They are proposing that Value Added Tax (IVA) be lowered from 8% to 2% and Income Tax (ISR) be reduced from 2.5% to 1%. The organizations argue that the current 8% IVA is calculated on the total sale price rather than the seller's actual profit, which does not account for product costs, shipping, or platform commissions.

While e-commerce continues to evolve into a vital infrastructure for Mexican consumption, offering opportunities in niche markets like regional foods, pet supplies, and specialized logistics, the rising tax burden is prompting some small businesses to reconsider using major marketplaces.