Last September 12, 2019, Senator Ricardo Monreal Ávila, member of the MORENA parliamentary group, presented in the Senate an initiative to reform the Value Added Tax Law and the Federal Telecommunications and Broadcasting Law.
With respect to the Value Added Tax Law, the purpose of the initiative is to levy Value Added Tax on users of streaming platforms.
Regarding the Federal Telecommunications Law, the initiative has two objectives: i) to include as a requirement for the rendering of restricted television and audio services through Internet, from the national territory or from abroad (streaming), authorization by the Federal Telecommunications Institute; and ii) streaming services must guarantee that at least 30% of their catalog is made up of national production.
On March 18, 2020, the initiative was approved in the Senate’s Finance and Public Credit and Legislative Studies committees, and yesterday it was listed for approval in the plenary. However, the Senators decided not to vote on the initiative during the session, so it will be passed for discussion and approval in September, when a new ordinary session begins.
We will continue to monitor the progress of this initiative and will keep you informed. At Acedo Santamarina we have a consolidated practice in telecommunications and we are ready to provide our clients with solutions that meet their needs.
