Mexico market due to the recent tax reform in the cross-border circle again set off a storm, if you have previously paid attention to the ambo public account article should have known about Amazon's withholding policy for sellers without tax number. Those of you who haven't seen the article can review it by clicking on the "Recommended Reads" at the bottom of the article.

As for the withholding policy of Amazon mentioned in the article, Amb has been in active communication with the Mexican tax bureau and has obtained a number of RFC tax numbers for Chinese sellers. Since it is a new tax, as the first to eat the crab, we also experienced various twists and turns in the application, after a series of trial and error, finally in Mexican Ministry of Economy and Mexican Tax Office Successfully applied for the Mexican RFC tax number of the offshore company for the Chinese cross-border e-commerce seller under the guidance of. The application status is very stable.

Below, we will present our bidding process and the suggestions and guidance from the Mexican Tax Bureau to Chinese e-commerce sellers in detail.

RFC is short for Registro Federal de Contribuyentes, which translates into Tax registration number in Spanish. So THE RFC tax number is not completely equal to the familiar European VAT number. The RFC tax number is better understood as a tax identification number. In Mexico, all taxable entities are identified by the RFC tax number and pay tax at the tax bureau.

First, overseas enterprises in Mexico must apply for a tax number in the local one Financial representative,And the representative should provide Permanent address For overseas sellers, this policy is similar to that of Spain, France and Italy in Europe. The representative not only needs to be authorized by the seller to handle the local tax affairs in Mexico, You also need to Assume joint and several liability for taxation.

After finding the local representative, the representative needs to be authorized. The letter of authorization and company materials must be passed Hague certification，To get approval from the Mexican tax office.

Complete Hague certification materials are still required in Mexico Local translation and notarization, And then it needs to be delivered Approved by the Mexican Ministry of Economy.The last step is to make an appointment with the tax office interview time, The financial representative of Mexico shall go to the tax bureau in person with all relevant materials to apply to the tax bureau officials in person, and whether the number can be placed will also be in In the day Out of the results.

At present, the booking system of Ambo's Mexican tax bureau is smooth, and there is no case of booking less than October. You can see the screenshots, a lot of them are open in October. If your agent is experienced, there should be no delay in getting the reservation number.

                 Reservation System screenshot

After you get the RFC, you need to apply for an electronic signature, which is similar to a key and is the login password for tax declaration. The signature is managed by the Mexican financial representative.

In response to some rumors in the market about the tax number of the subsidiary company, our Colleagues in Mexico would like to dispel them in the official account of Ambo. Applying for a subsidiary in Mexico is a very complicated process. The most direct point is that there is no single shareholder limited liability company in Mexico. All registered local companies must have two or more shareholders in joint venture and need to file the articles of association with the Ministry of Economic Affairs, which is fundamentally different from applying for an offshore company.

In view of this, we also contacted the Mexican Tax Bureau and the Ministry of Economy. Finally, we learned that some agents declared to the Tax bureau that the enterprise applying for the tax number did not use Amazon FBA in Mexico when applying for the Tax number, which resulted in the judgment of the tax bureau that the tax number had no tax liability. The tax agency says that whether the owner of a tax number is subject to tax depends on the actual sales and business activities of the store in Mexico, not just the information provided when applying for a tax number.

Mexican tax bureau also revealed that they can directly export data from Amazon background, then it will be very intuitive to see which sellers have inventory in Mexico, which do not, so according to the amazon inventory application to the tax number of sellers should be extra careful. Mexico has a low tolerance for tax concealment and misreporting. If you do not want to be fined by the Mexican tax Bureau in the future, you are advised to tell the truth when applying.

At present, Amazon has officially announced that after uploading the RFC tax number, Amazon will withhold taxes based on 36% of sales to 8% of VALUE-ADDED tax.

First of all, although Amazon has made the withholding, the 8% VAT still needs to be declared offline, which echoes the electronic signature we mentioned before. If your tax number is "no tax obligation", you will not get the electronic signature, and you will not be able to declare the 8% VAT that should be declared by you.

Specifically, whether cross-border e-commerce sellers need to pay the full 16 percent value-added tax and 20 percent income tax? At present, the result of our communication with the tax bureau and the Ministry of Economy is that whether to pay the tax or not should be judged by the seller's business activities in Mexico. If there is a fixed warehouse in Mexico and sales activities in Mexico, it belongs to the taxable category.

However, there are different voices within the tax bureau on the definition of amazon sellers' business behavior. We will further verify with Amazon.

• VAT is reported monthly and calculated on the basis of final selling price. The first filing period is notified by the Mexican tax office and the deadline is the 17th of the following month.
  
  
• Income tax, calculated on profit. According to the current Mexican tax law, the first fiscal year is the annual report, and the new tax number applied for in 2020 will be filed before March 31, 2021, and the second fiscal year will become the monthly report.