Flash! Mexico tax reform latest policy interpretation,安博国际财税（深圳）有限公司

As of 1 June 2020, according to Mexican law. Amazon will withhold the value-added tax (VAT) (16%) generated by the actual sales conducted at the Site in Mexico and the income tax (ISR) (20%) generated by the monthly sales withheld on a monthly basis. The seller's federal tax code, the RFC, will determine how much Amazon will withhold each month.

Mexican tax

● Value added tax VAT：It applies to sales orders placed on E-commerce sites in Mexico, with warehouse delivery in Mexico and delivery to a consumer with a delivery address in Mexico.

●Income tax ISR:Applicable when the seller has a fixed address in Mexico, has storage in Mexico, and sells within and outside Mexico.

I'm sure you're wondering what the benefits are of registering for a local VAT:

》If you don't upload an RFC, Amazon will deduct 16 percent VAT plus 20 percent income tax.

》If the RFC is uploaded, the platform will only deduct 8% VAT (which will not be refunded) and the remaining 8% will be self-declared.

In a nutshell, it is tax saving: in addition to VAT, which can be deducted from VAT input, income tax is levied on profits. After registration with RFC, commission, advertising fee, cost and FBA logistics fee can be deducted, which is levied at 20%. The platform collects 20% of sales directly, much less than without an RFC.(Note: The product cost here is generally determined by the seller's customs declaration value）

Can Chinese business license register RFC? Or must you register a local company in Mexico and then apply for RFC?

Branch or offshore tax number can be bound to THE AMZ background.

It is especially emphasized here that the Mexican branch must be a branch established in partnership between amazon registered company (Chinese company or Hong Kong company, etc.) and the Mexican tax representative, and must be a branch registered in relation to the store registered company.

Can individuals apply for RFC Mexico?

You can.

What is a compliant RFC tax number?

Single tax number for each account: the compliant RFC tax number requires the registered company and legal person information to be completely consistent with the company and legal person information on the back of the Amazon account.

（The only situation of public tax number: Multiple Amazon accounts are registered with the same set of company and legal person materials）

Obtain official certificates issued by the government：

Https://www.sat.gob.mx/aplication/login/28889/obten-tu-cedula-de-identificacion-fiscal

Will the account be at risk if the compliance tax number is not submitted on time?

No, but Amazon will withhold 36 percent monthly.

Do NARF and spontaneous sellers need to provide RFC?

No, neither NARF nor Chinese goods will be affected. The tax reform is aimed at the sales generated by warehousing in Mexico, and the overseas goods in Mexico are subject to the tax.

Can RFC be used for customs clearance?

The RFC of Mexico cannot be used for customs clearance, and RFC is only used for invoicing. The customs clearance is still to be done by the customs clearance company. The customs clearance company can issue RFC invoice to the seller and deduct it with the invoice.

Will the receipt of goods in transit be affected?

will not.

Flash! Mexico tax reform latest policy interpretation

分享至微信分享