From an email from Amazon last week
IMPORTANT: Please provide your MX Tax ID, Registro Federal de Contribuyentes (RFC)
Dear Selling Partner,
We are reaching out to provide information about your Amazon account and Mexico Tax Reform rules introduced in December 2019, that begin on June 1, 2020.
Beginning June 1, 2020, Mexican law requires Amazon to act as a withholding agent of Mexican income tax on your sales as well as value added tax (“VAT”) charged on the sales you conduct through our online store. Amazon must begin withholding VAT and income tax on your total monthly sales when applicable*. Your Registro Federal de Contribuyentes identification number (RFC ID) will determine the amount of withholdings that Amazon will apply on a monthly basis.
Please make sure your Mexico Seller Account has your valid and updated RFC ID registered.
When are these conditions applicable?
VAT (IVA) applies when: A sale is made on a Mexico Online store, is shipped from an address in Mexico, and the ship-to address (destination) is in Mexico.
Income Tax (ISR) applies when: Mexico Income tax applies to Sellers with a location in Mexico, selling in Mexico or abroad, and Sellers holding inventory in Mexico.
What does this mean for you?
Most importantly, if you or your business have a valid RFC ID, please register it on your selling account immediately. Mexico RFC ID registration at Amazon is not retroactive. Any tax amounts withheld prior to registering your valid RFC ID with Amazon will be remitted to the Mexican government and will not qualify for a refund from Amazon, for any reason.
What can you expect?
On June 1, 2020 Amazon will begin collecting Mexico VAT on the sale (VAT inclusive prices) of products you offer to customers in Mexico (buyer pays) whenever VAT is applicable.
Amazon will also calculate your monthly total sales to determine the amount of income tax withholdings that are applicable to your balance.
If you have not provided your valid RFC ID to Amazon you should expect that:
- 100% of collected VAT on your sales will be withheld; and
- 20% of income tax applicable to revenue from your sales will be withheld.
- Both will be remitted by Amazon to the Mexican government.
If you have provided your valid RFC ID to Amazon:
As a Business (persona moral): 100% of collected VAT from your sales will be remitted to you, and no income tax will be withheld.
As an Individual (persona física): 50% of collected VAT from your sales will be remitted to you, and 50% will be remitted directly to the Mexican government.
The amount of income tax withheld will be based on your monthly earnings and sliding scale. The withheld amounts will be remitted directly to the Mexican government.
If you are about to register or currently have an RFC ID for tax purposes, please do not delay providing your registration information.
You can follow this video tutorial which walks you through these steps.
1 Click here to go directly to the RFC ID registration page; or
2 In Seller Central, go to Settings, and choose Account Info
3 Locate the Tax Information section and click RFC ID
4 Enter your RFC ID
5 Click Update
6 Close the page or click Back to return to your Account Info page
7 Upload here
your RFC ID in PDF or JPG format.
You can download the RFC ID PDF or JPG from this
official government site for free)
If you have questions about this process, you can contact our Selling Partner Support team here.
If you are interested in the North America Remote Fulfillment Program (NARF), please write an email including your Seller Account name and token ID to email@example.com .
Important Notice: Information in this communication does not constitute tax, legal, or other professional advice.