Uber Mexico now charging tax on services affecting its associates

The transport service ensured that the rates will remain the same for users

Uber is another company that must apply the Value Added Tax (VAT) on digital services in Mexico; however, users will not be responsible for disbursing that investment, but drivers will.

Therefore, people who hire the mobility service through the application will be able to rest easy, as they will not be charged anything extra, while drivers will have to be subject to the change from June 1.

According to the newspaper El Financierothe driving partners will be subject to the payment of VAT on the service fee, with a variable value from 0.16% and up to 6.8%, of the fare of each trip made through the Uber application.

Remember that the Uber platform charges the driver for the digital services it offers; however, said collection will have VAT from the established date.

The driving partners will be subject to the payment of VAT

In December 2019, Congress approved reforms to the Federal Law on Telecommunications and Broadcasting , and the Federal Law on Value Added Tax (VAT), for which reason the changes emerged.

“As part of the provisions established in the Tax Reform and as we have done every month since June 2019, Uber will continue to calculate, withhold and pay directly to the SAT the amount of ISR and VAT that corresponds to pay all driving partners and delivery partners registered on the platform, without Uber receiving or retaining any financial gain for it, “the company explained.

The economic crisis due to the coronavirus in Mexico and the world also hit the American company, as far as its business is concerned, since it reported a loss of at least USD 2.9 billion.

Although the subsidiary that kept them afloat was Uber Eats, the platform that users occupy to send food to their homes, as their profits increased by 14%, that is, around USD 3,540 million.

Uber Eats kept the company afloat.  (Photo: Reuters)
Uber Eats kept the company afloat. 

Other online services will also increase fees paid for services

Source: infobae.com

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