Response to "IMPORTANT: Please provide your MX Tax ID, Registro Federal de Contribuyentes (RFC)"

May 21, 2020

Recently,  all FBA sellers in Mexico received a notice from Amazon in Mexico regarding the tax ID.

 

It asks for tax ID (i.e., the RFC ID), most sellers do not have it, because it is for registered entity (individuals or companies) in Mexico. 

 

First of all, please note the "RFC ID" that America Ship provided you can NOT be used for sales tax purpose. It is only for enabling your FBA shipment to Mexico. Do NOT provide the RFC ID of America Ship to Amazon for tax purpose.

 

Now, it comes to sales tax issue.   A simple answer is, Do NOT worry about it, just wait to June 2020 and see what happens.

 

When you sell something, the buyer pays for the VAT tax ( similar to the sales tax in the USA).  Amazon Mexico will collect the sale tax and give to the Mexico government. It has nothing to do with FBA sellers. And, it has nothing to do with the import/export duties and fees when you ship the  products to FBA Mexico. 

 

 

The recent notice basically means, if you have a valid RFC ID of your own, the sales tax will not be given to the Mexico government directly, it will be given to you, but you, as a registered entity in Mexico, will report tax later on. You still need to pay the sales tax to government. You do not get a penny out of it.

 

Therefore, there is essentially nothing new in the notice. So, just wait to late June and see what happens.

 

Quote the statement in the notice, "If you are about to register or currently have an RFC ID for tax purposes, please do not delay providing your registration information."  Most sellers don't have the RFC ID for tax purposes, just ignore it.

 

 

*******************************************

 

Appendix.  Notice from Amazon Mexico


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.

 


 

 

 

Check video

 

 

 

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 narf-support@amazon.com .

Important Notice: Information in this communication does not constitute tax, legal, or other professional advice.

Best regards,
Amazon

We hope you found this message to be useful. However, if you'd rather not receive future e-mails of this sort, please unsubscribe.

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