The Mexican RFC tax is 30% corporate income tax (ISR) and 16% product VAT; the annual declaration period is from January to March each year, and the tax for the previous fiscal year is declared and paid. Monthly declarations must be completed before the 17th of each month for the previous month, and temporary or final taxes must be paid. On Amazon, if the seller cannot provide a valid Mexican RFC, Amazon will deduct 16% VAT & 20% income tax. If there is an RFC (the information must be consistent), the collected taxes will be refunded; if there is no RFC or the information is inconsistent, it will not be refunded.
Do all sellers need to register a Mexican RFC number?
Not really. Sellers who have FBA or local overseas warehouses in Mexico need to register an RFC tax number.
It should be noted that if the inventory is sold remotely by a North American warehouse or directly mailed to Mexican buyers from China or the United States, there is no need to register an RFC. If Chinese sellers do not provide a tax number, Amazon will withhold and pay VAT and income tax based on the sales volume of that month.
Frequently Asked Questions about Taxation in Mexico:
1. What are the advantages and disadvantages of local Mexican sellers and Chinese sellers?
As a local seller in Mexico, the company needs to pay not only VAT, but also ISR (income tax).
If you apply for a Chinese cross-border e-commerce seller, the RFC only needs to pay VAT in the form of a financial representative. Mexico does not need to pay ISR, but needs to declare income tax in China.
2. Can I fill in the freight forwarder RFC?
The company information corresponding to the RFC tax number applicant on the Amazon backend of each FRC must be exactly the same as the company’s registered legal person information. The same tax number cannot be used for multiple accounts. Sellers cannot use freight forwarder RFC.
3. Do sellers who ship goods by themselves need to apply for RFC?
If the seller on the Amazon Mexico site does not open a local website FBA warehouse, they can choose self-shipping (MFN) and NARF. The Mexican government does not need to provide the Mexican government RFC; since the buyer is the importer of the seller who ships goods by themselves, the buyer needs to bear all import tariffs VAT, so e-commerce sellers do not need to register RFC locally.
4. How to check whether the seller’s sales tax is withheld?
On the order details page of the seller platform, the Amazon platform section will display the estimated VAT of the product. If withholding occurs, the [Mall Withholding Tax] below the sales revenue will show the tax deduction, otherwise it will be left blank.