Due to changes in Mexican laws, Roku has started to deduct 16% from all transactions to cover the Mexican VAT tax. The change went into effect on June 1, 2020 to comply with Mexico’s Value-Added Tax Law on digital services.
For partners, Transaction Reporting will reflect the reduction for all transactions registered in the Mexico Channel Store in the “net_amount” column. For users, the change will be visible as a “Tax” line item in Roku invoices.
Below are some available options if VAT is not currently included in your product pricing:
- Don’t make any changes: Partners are not required to increase their prices, but will incur a 16% decrease per transaction with this route.
- Increase the price of your products:
- New Subscribers: Changing the price in the Developer Portal will increase the price accordingly for new subscribers ONLY.
- Current Subscribers: Roku can assist with updating the price for the existing subscriber base. This option will require you to message your users to inform them of the increase and a future date when it will go into effect; thereby giving users the opportunity to cancel before their next billing cycle. Please align with your Roku contact on the timing of price changes for existing subscribers.
- For channels that are available in multiple regions:
- Regional Pricing: Products/prices can be managed by region if your channel includes logic to detect the channel store that’s associated with a user’s Roku account (refer to Get CounryCode () as Stringdocumentation) and display the corresponding product.
Note: If your products aren’t region specific, any changes made to price will impact the price across all regions. (The 16% Mexico VAT tax will only be applied to Mexico Channel Store transactions.)