31 May 2023

Client's background

Ubisoft Montreal, is a leading developer and publisher of interactive video games with operations in Canada and the Latin American market. The company sells digital goods and services directly to consumers and has been using a third-party payment processing agreement for collecting payments in Mexico and Latin America.

Ubisoft faced potential tax considerations, particularly regarding the Value Added Tax (VAT), for its commercial activities with Mexican consumers. The Mexican VAT Law requires VAT to be charged on digital services and goods sold through digital platforms to consumers in Mexico.

Ubisoft also sought to assess tax implications in other Latin American countries and turned to MSI's Mexican accounting member firm Perez Gongora & Asociados, S.C. for assistance.

How did MSI Global Alliance provide the solution?

Perez Gongora y Asociados acted as the lead firm and engaged MSI member firms across Latin America to provide tax consultation to Ubisoft. They coordinated with MSI members in ten countries, exchanged information, and facilitated the analysis and understanding of tax situations and exposures for the client.

Throughout the process, Perez Gongora y Asociados coordinated the provision of consultations from all member firms, exchanged memorandums/opinion letters, and ensured clear communication between the firms and the client.

All involved accounting and law member firms of MSI Global Alliance provided insights on tax implications and contingencies in their respective countries, helping Ubisoft understand the applicable tax treatment and mitigate potential risks.

The client highly appreciated the coordination and follow-up efforts, as the project successfully identified high-risk locations, allowing the client to effectively prioritise their needs and allocate resources accordingly.

The client was impressed with the proactive coordination and follow-up, which involved videoconference calls with the respective member firms until a complete understanding of each country's comments was achieved.

Perez Gongora y Asociados, S.C. collaborated with the following MSI Latin American member firms to navigate tax implications for Ubisoft Montreal:

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