Unlocking New Ecommerce Opportunities with a Mexican VAT Registration

The Mexican ecommerce market is shaping to be one of the fastest growing sectors, making it an ideal expansion target for ecommerce sellers.  As the uncertainty surrounding recent US tariff policy further complicates global supply chains, Mexico has emerged as a potential gateway into the US market. 

For ecommerce sellers, registering for VAT and obtaining an RFC (Federal Taxpayers Registry) Number is vital to unlocking the Mexican market. 

A rapidly growing ecommerce market

Mexico is no longer just a manufacturing hub or a logistics shortcut—it is now considered one of the most dynamic e-commerce markets in Latin America.

Market analysts predict that the Mexican ecommerce market is expected to reach over $82 billion by 2028, making Mexico a prime target for businesses looking to expand into new international markets.   

This growth is being driven by increased internet and smartphone penetration, improved payment infrastructure, and rising consumer trust in online shopping.

Major platforms such as Amazon, Mercado Libre, and TikTok are now investing heavily in their Mexican operations.

Recent reports suggest many platforms are expanding logistics and fulfilment capabilities to support this surge in demand. TikTok is reportedly turning its attention to Mexico amid regulatory uncertainty in the US, viewing it as a top alternative for social commerce expansion under its TikTok Shop initiative.

This presents a timely opportunity for ecommerce sellers to tap into a thriving consumer base.

Navigating tariff uncertainty – Mexico as a gateway into the US

The Trump administration has recently announced a broad range of tariffs against major trading partners.

Besides from the headline ‘reciprocal tariff’ announcement on 2 April 2025 which included a ‘baseline’ minimum tariff rate of 10% on US imports, and higher specific tariff rates for 57 other countries, the administration had already imposed a blanket tariff of 25% on two other major trading partners – Canada and Mexico. 

However, the Trump administration subsequently announced that goods which fell under the existing US-Mexico-Canada Agreement (USMCA), signed during his first presidential term,  would be exempt from the new tariffs.  This carves out a broad exemption from the blanket 25% tariff rate imposed on Canada and Mexico.

In addition to its proximity to the US, the tariff exemptions under the USMCA and comparatively lower tariff rates (especially compared to major exporters such as China) mean that Mexico may be potentially used as a gateway to US consumers.

It is important to note that US tariffs are currently applied based on the country of origin as opposed to the country of import.  As such, sellers may wish to consider leveraging Mexico’s extensive ‘maquiladora’ – manufacturing-for-export – arrangements.  This allows overseas sellers to import components or inventory into Mexico for final processing, packaging and labelling, which may allow some goods to be classified as originating from Mexico under current US tariff regulations.

Unlocking the Mexican market

The combination of a booming ecommerce market and regulatory uncertainty surrounding US tariffs makes Mexico an excellent launchpad for North American trade. 

But, in order to unlock these advantages, you’ll need to make sure that you’re compliant with Mexican tax regulations.  To do this, you’ll usually need to register for VAT.

Registering for VAT with the Mexican Tax Authority SAT (Servicio de Administración Tributaria) will allow your business to obtain an RFC (Registro Federal de Contribuyentes) number and corresponding certificate. 

It is not possible for overseas businesses to register for VAT without appointing a local authorised representative – TBA Global is here to help.

Why register for VAT in Mexico?

Inventory storage requirements

You will need to provide a valid RFC number in order to store any inventory in Mexico.

Importing into Mexico

You will need to appoint an Importer of Record in order to facilitate any shipments into Mexico. 

However, in order to successfully receive the goods, you will need to provide a valid RFC number as per the inventory storage requirement outlined above.

Platform requirements

New tax regulations mean that major platforms are also required to act as a marketplace facilitator.

Marketplace facilitation refers to when a third-party platform is required to hold tax on behalf of a seller and remit the tax to the relevant authority directly, rather than relying on the seller to declare the appropriate amount of tax themselves.

This can be applied to both VAT registered and non-registered businesses.  It’s also important to note that even if your marketplace is collecting VAT on your behalf, if you conduct any activity that requires a VAT registration, you’ll still need to file timely VAT returns. 

Each marketplace has implemented Mexican marketplace facilitation rules differently.  Two major examples are Amazon and Temu:

Amazon

Sellers can continue to sell on Amazon.com.mx without uploading a valid RFC number.  However, any sellers wishing to use Amazon FBA in Mexico must upload a valid RFC number in order to use the service (as per inventory storage requirements). 

In response to the new regulations, Amazon will begin withholding tax on behalf of sellers.  The amount of tax withheld will differ depending on whether an RFC number is provided:

• Without RFC: 20% income tax + 16% VAT
• With RFC: 16% VAT

Temu

Sellers must provide a valid RFC number to use Temu, who will verify the registration against their stock shipments.  If the verification process fails, the inventory will be invalidated and will not be shipped. 

Temu will then re-verify the seller’s RFC registration on a monthly basis.

TBA Global and your business

Mexico is rapidly becoming one of the most important e-commerce markets globally. With recent tax reforms, robust consumer growth, and strategic trade advantages under the USMCA, now is the ideal time to formalise your operations through VAT and RFC registration.

Whether you’re expanding your customer base or seeking new ways to navigate US tariffs, establishing a foothold in Mexico gives your business a strategic advantage.

TBA Global offers a complete VAT registration service tailored to e-commerce businesses.

Our solution helps sellers navigate local regulations, prepare required documentation, and stay compliant with evolving Mexican tax rules.

Whether you’re looking to sell directly to Mexican consumers or use Mexico as a strategic gateway to North America, we can act as your local authorised representative and assist with:

• VAT registration
• VAT return filing
• Compliance with other ongoing obligations
• A proactive approach to new regulatory requirements

Contact us via info@tbaglobal.com to start the registration today or submit a consultation form on our website, and explore a smarter path to North American success.

Content last updated on May 28, 2025.