Mexico now requires foreign digital service providers to meet two new registration conditions: 1) Legal documents must explicitly state their primary business activity is offering services through a technological platform, and 2) companies must submit a legal representative-signed affidavit detailing their services, website, and main business address.

The bottom line: The registration process for digital service providers operating in Mexico will become more complicated. New registrants should carefully check and potentially update their paperwork to meet these new requirements.

The New York State Division of Tax Appeals concluded the sale of software-as-a-service and managed services is taxable as the sale of prewritten software. Prewritten software, when sold together with the companies‘ services, is significant enough to be considered taxable.

The bottom line: Businesses should pay close attention to how they market, sell, and price their services in New York State, especially if they are offering services along with software. Some businesses will want to consider unbundling and charge separately for otherwise non-taxable services and software licensing to avoid tax exposure.

Foreign companies providing digital services in Senegal must register for VAT starting July 1, 2024—a deadline extended from the original April 2024 date. For business-to-business (B2B) transactions, the responsibility shifts to the Senegalese business customer, who must self-report and pay the VAT through the reverse charge mechanism.

The bottom line: International digital service providers need to prepare for VAT registration if serving Senegalese consumers, while Senegalese businesses should ensure their accounting systems are ready to handle VAT on foreign digital purchases.

Indiana passed Senate Bill 228 which will retroactively remove the transactions threshold for remote seller nexus under the sales tax.

The bottom line: Remote sellers and online marketplaces will only need to collect Indiana sales tax if they make more than $100,000 in total sales to Indiana customers. The previous rule, which also required tax collection after 200 separate sales regardless of dollar amount, has been eliminated. This change applies retroactively.

Wyoming House Bill 197 updated the state‘s economic nexus rules by removing the 200-transaction threshold. Starting July 1, 2024, out-of-state sellers will only need to collect Wyoming sales tax if they exceed $100,000 in sales to Wyoming customers.

The bottom line: Businesses with low-value but high-volume sales to Wyoming will no longer face tax collection requirements based solely on transaction count.

Starting July 2024, Minnesota will impose a $0.50 delivery fee that applies to certain transactions involving retail delivery in Minnesota. This fee will apply to transactions where charges for clothing or tangible personal property subject to sales tax equal or exceed $100.

The bottom line: Retailers and online marketplaces delivering physical products to Minnesota customers must now decide whether to absorb a new delivery fee or pass it on to consumers.