- VAT REGISTRATION & RETURN
RFC Registration In Mexico
Mexican VAT Key Points
VAT in Mexico is known locally as Impuesto al Valor Agregado (IVA). In Mexico, the standard rate of VAT is 16%, with some goods and services zero-rated or exempt from VAT.
Applying for VAT will allow your business to obtain an RFC number
All overseas businesses must register for VAT if they use warehousing arrangements in Mexico
Some selling platforms will require a valid RFC number regardless of whether local warehousing arrangements are in place (e.g. Amazon.mx)
Regular VAT returns must be filed as per the frequency required by the Mexican Tax Authority – this is usually monthly
Registration
If your business is intending to store inventory in a Mexican-based warehouse, you’re required to register for VAT.
When you apply for VAT, the Mexican Tax Authority (Servicio de Administración Tributaria or SAT) will issue a Registro Federal de Contribuyentes (RFC) number for your business. This number can be used as a VAT number.
- Businesses without a physical establishment in Mexico must appoint a fiscal representative to oversee the registration process and ongoing filing obligations once registered.
- Importing inventory into Mexico also requires an Importer of Record to be appointed – this can be arranged with your logistics provider.
Mexican VAT Rates & Exemptions
The standard VAT rate in Mexico is 16% and it applies to most goods and services. It’s locally referred to as Impuesto al Valor Agregado (IVA) and the amount due is usually included in the final retail price.
Additionally, some transactions are zero-rated and are therefore exempt from VAT. In the case that VAT is charged, the VAT paid can be reclaimed from the tax authority.
Marketplace Requirements
Ecommerce platforms such as Amazon are required to check whether businesses are operating with a valid VAT registration.
As of the 1st June 2022, all businesses selling on Amazon.com.mx will not be able to use the platform without providing a valid RFC number (obtainable upon successful VAT registration).
Basic Requirements
Some basic information is required to start a Mexican VAT application for your business:
- Company/business certificate
- Articles of association
- Director’s proof of identity (e.g. passport or national ID card, ID cards require English translation)
- Amazon/website store links – to indicate proof of trading
US businesses must also provide their EIN certificate.
VAT Filing & Return Deadlines
- Filing of VAT Returns
The standard filing frequency is monthly.
- VAT Return Deadlines
The filing deadline is the 17th of the month following the return period.
Payment must be made at the same time.
- Advice for Ecommerce Sellers & Marketplaces
As an ecommerce business relying on distance sales, it can sometimes be difficult to determine your tax obligations. TBA Global can help you to ensure that you stay compliant, no matter where you are trading.
If you’re interested in international expansion, why not pick TBA Global as your one-stop-shop for comprehensive compliance solutions?
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Frequently Asked Questions
The standard rate of VAT is 16%.
A fiscal representative is required for all overseas businesses.
Once your application has been approved, you will be issued a Registro Federal de Contribuyentes (RFC) number, comprising 12 or 13 characters, along with a corresponding certificate. From the moment this RFC number and certificate are issued, you will be obliged to submit VAT returns.
VAT returns are filed monthly, with both the submission and payment due on the same date—the 17th of the month following the relevant reporting period (e.g., returns and payments for October must be completed by 17th November). Payments can be made directly to the SAT via authorised banks and platforms, or through your appointed local representative. Failure to adhere to these filing and payment obligations may result in financial penalties or the suspension of trading activities.
The standard filing frequency is monthly. Payments must also be made at the same time.
Marketplace facilitation refers to the process where third-party platforms collect and remit taxes directly to the authorities on behalf of sellers, rather than leaving the seller responsible for declaring and paying the tax.
These new rules predominantly target major e-commerce platforms, such as Amazon, which must also obtain their own RFC numbers to continue operating within the country. The rate of tax withheld varies according to local legislation, and in Mexico, it may be as high as 100%, depending on the platform.
Yes, even if your selling platform collects and remits VAT on your behalf, you are still required to file a monthly VAT return to maintain your registration and stay compliant with Mexican tax regulations.
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