Analysis of the Mexican Excise Tax (IEPS) on Authorized Online Betting and Gaming

Abstract

In this paper, the taxability of the authorized digital gambling and lottery games in Mexico to the Special Tax on Production and Services is analyzed; as well as the methodology for determining the taxable base in this economic sector. Special emphasis is placed on the taxpayer's legitimate possibility to exclude the Special Tax on Production and Services from the taxable base, after applying the legally authorized deductions, due to the impossibility of transferring the corresponding tax to the final consumer on the corresponding digital invoice.