The federal government published this Wednesday the decree that grants a 100% fiscal stimulus to the Special Tax on Production and Services (IEPS) that will be applied from 2026 to the sale and distribution of video games with violent, extreme or adult content.
This, with the aim of facilitating tax compliance and avoiding economic impacts on the sector.
Last week, President Claudia Sheinbaum announced that her government decided not to collect the 8% tax on video games planned from 2026, given the difficulties in making its application effective.
The decree, published in the Official Gazette of the Federation (DOF), occurs after the reform to the IEPS Law approved in November, which established that from January 1, 2026, this tax will be charged for the sale of physical video games not suitable for minors under 18 years of age, as well as for digital services that allow their access or download, including those provided from abroad.
According to the decree, the fiscal stimulus is equivalent to 100% of the IEPS that must be paid for said activities, as long as the tax is not transferred to the final consumer. The benefit will be creditable against the IEPS itself, but will not give rise to refunds or compensation.
The measure applies to both sellers of video games in physical format and to residents abroad without an establishment in Mexico and to residents in the country who offer these contents through digital services.
The federal government argued that the Executive is empowered to dictate measures that facilitate compliance with tax obligations and to grant subsidies or incentives, in accordance with the Federal Tax Code.
Read: Sheinbaum announces that no tax will be charged on violent video games due to the difficulty of applying it
The decree also requires taxpayers to apply the incentive to comply with various formal tax obligations provided for in the IEPS Law.
In the case of digital service providers, they will be exempt from the obligations contained in articles 5-A Bis and 20-A of said law, which implies that the temporary blocking of platforms for non-compliance related to this tax will not be applied to them.
However, the exemption will not apply to value added tax (VAT) obligations for the provision of digital services, so suppliers must continue to comply with the provisions of the VAT Law.
Likewise, the fiscal stimulus will not be considered cumulative income for Income Tax purposes, and taxpayers will be relieved of submitting the corresponding notice to the tax authority. The Tax Administration Service (SAT) will be empowered to issue the necessary rules for the correct application of the decree.
The stimulus will come into force on January 1, 2026, the same date on which the IEPS would begin to apply to these video games, which in practice neutralizes the impact of the new tax as long as the established conditions are maintained.
With information from EFE
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