Mexico’s 2020 economic plan states that technology platforms that sell goods and services online must comply with new tax regulations. Regarding customs clearance, inspection, taxation and certification of goods imported into Mexico, all goods imported into Mexico require a commercial invoice and packing list, and the importer should be qualified to import the goods and have an official Mexican tax number (RFC number) to handle customs clearance procedures.
What is Amazon RFC? The Mexican tax office issues a unique number to each individual or legal person registered in the registry.
How is the Mexican RFC calculated?
First, if a valid RFC ID is not provided, Amazon will calculate a 36% tax (16% VAT + 20% income tax) on the seller’s monthly distribution total in Mexico (from FBA or Mexican warehouses) and remit these amounts to the Mexican government.
Second, if the seller has registered a valid RFC ID; and you are an individual registered seller (natural person), Amazon will calculate an income tax of 0.4%-5.4% based on the seller’s monthly total sales and remit these amounts to the Mexican tax authorities.
Read three, if the seller has registered a valid RFC ID; and you are an entity/corporate registered seller (legal person), Amazon will not deduct any income tax on the monthly sales of corporate sellers.
Frequently Asked Questions about Mexican RFC Registration:
Q: What if the seller does not upload the tax number?
A: For those sellers who should upload the RFC but do not upload the RFC, Amazon will not restrict their sales in Mexico for the time being. But Amazon will pay 36% of sales directly to the Mexican Tax Bureau.
Q: Do RFCs registered in China need to declare income tax?
A: Yes, the specific tax rate is not clearly stipulated, and the default is 30%.
Q: Do Narf and self-shipping sellers need to provide RFC?
A: Narf and self-shipping sellers will not be affected and do not need to provide it. Because for sellers who deliver goods by themselves, the buyer is the importer, and the buyer needs to bear all import duties and value-added tax. All e-commerce sellers do not need to register with the local RFC.