Overview
- Draft 2026 budget measures would require platforms to withhold 10.5% on marketplace sales — 2.5% income tax and 8% VAT — calculated on sellers’ gross revenues.
- Mercado Libre says the scheme would squeeze liquidity and raise compliance costs for more than one million small and mid‑sized firms that sell online in Mexico.
- Executives warn the change could push sellers to informal channels and force consumer price increases of around 10%, undermining recent gains in formalization.
- The company cites roughly $15 billion in 2024 seller activity on its platform and has proposed a compromise withholding of about 3% (1% ISR, 2% VAT).
- The proposal remains under congressional debate without final approval, and Mercado Libre says its Mexico investment plans, including a $3.4 billion program, could be reduced if the measure passes as written.