Digital Services Tax leads to increase in Spotify prices in Mexico
In these moments where the vast majority of people are still locked in their homes, music serves to distract us and forget what is happening around the world. Many are the music streaming applications that have seen how a lot of users are listening to their favorite songs or discovering great artists and songs on their platforms, and among them of course we have Spotify.
However, things have not been easy for applications like this and services the size of Uber, Netflix, Amazon and even PlayStation in our country. As they will remember, on June 1 of this chaotic 2020 digital VAT and ISR came into force in Mexico, that according to these new fiscal reforms proposed by the Federal Government, would completely change the prices of mobility and entertainment services.
Thanks to this digital tax, a lot of companies have gradually increased the price on their platforms. But As of this August 17, the prices of Spotify subscriptions went up from all these settings, although the same company declared at the beginning of all these changes that they would maintain their prices in the country, being one of the few companies that were firm with this decision.
In the end, the company is not there was no other choice but to modify the cost of the service in Mexico. According to El Universal, the change will not be as important as other companies had to do, but at the end of the day it will be a few more bucks that music fans will have to fork out to listen to their favorite songs. This is how Spotify prices will be in our country.
University: 57 pesos per month Individual: 115 pesos per month Duo: 149 pesos per month Family: 179 pesos per month
Older users will have ‘benefits’
Even if these prices apply from now on for all those who are new and wish to subscribe to Spotify, the application will have a kind of reward for all users who have been with them for years. Turns out that Those who have an active account within the platform will have two more months to enjoy the previous price, so it will be until November when they pay the new rate.
The increase in digital applications and services such as Spotify is a 16 percent corresponding to Value Added Tax (VAT) and all digital services that are contracted via apps are part of this price adjustment. It should be noted that each of the companies can adjust their costs, that is, the tax would not necessarily be reflected in the final price of the services, so prices could be lower.
Source – explica.co
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