LATAM Digital Tax Calculator
Estimate digital VAT and withholdings.
Your digital income
Platforms, ads, SaaS, international freelance
You'll receive approx
$920 USD
Withholding
8% (-$80)
IVA / VAT México
16%
Gross
$1,000
México · 2026 Digital rules
RESICO 1-2.5% if <$3.5M MXN/year. ISR withheld by platforms: 1-8%. Digital VAT: 16%.
Digital VAT
16%
Resident withholding
8%
Disclaimer: This calculator is informational and uses general 2026 rates. Exact rules depend on your activity (services vs. sales), tax regime (RESICO, Monotributo, MEI, RUS) and bilateral treaties. Consult an accountant before filing.
How this tool works
Since 2020, most LATAM countries apply VAT or similar tax on digital services provided by foreigners (Netflix, AWS, Slack, Stripe, etc.). This also affects freelancers billing local clients: your local client may have to withhold tax on your invoice.
This calculator applies 2026 rates for 8 countries: Mexico (digital VAT 16%), Colombia (VAT 19% + 2.5% source withholding), Argentina (VAT 21% + 8% perception), Chile (VAT 19%), Peru (IGV 18%), Brazil (variable ISS + IRRF 15%), Spain (VAT 21%) and EU (VAT per client country). Returns gross, withholdings and net so you know how much you'll actually receive.
Frequently asked questions
- Do I pay VAT if I export from Argentina to US?
- No — service export is VAT-exempt in Argentina (as long as client is abroad and service is 'used' abroad). But you do pay Income Tax/Wealth Tax on the income.
- What if I'm a Mexican freelancer billing US?
- VAT-exempt due to export. But if you receive over a threshold, RFC + ISR applies. If you sell to a Mexican client, VAT 16% does apply.
- Is digital VAT new?
- Yes, mostly post-2020. Argentina: 30% 'country tax' on foreign digital services (Spotify, Netflix). Chile: digital VAT since 2020. Colombia: foreign VAT since 2018.
- How do I protect myself?
- Document your invoice well (residency, service nature, term). If your client is in LATAM, consider billing in USD and letting them handle conversion + local taxes.