What is the Mexico Tax Number RFC? Mexico Tax Number RFC Review

importance

When shipping from Amazon Mexico FBA, a shipment cannot be created without an RFC.

However, Amazon and its fulfillment centers will not process shipments of Fulfillment by Amazon (FBA) inventory as the Importer of Record (IOR). Listing Amazon as the IOR or not specifying an IOR on an inbound Amazon shipment to Mexico may result in the loss of your seller privileges. Additionally, noncompliant shipments may be refused or returned at the shipper’s expense. Therefore, an RFC is a must for the importer.

Importer RFC registration status

1. Residents

Sellers acting as the importer of record for their own shipments must have a tax number (Mexican Tax Registration Number or "RFC" number) and generally be residents of Mexico for income tax purposes. Resident importers must be registered and recorded in the Register of Importers (Padrón de Importadores) at the Secretariat of Finance and Public Credit (Hacienda). Certain goods may require additional registrations for importation.

Sellers should consult with a Mexican customs broker and/or legal counsel to determine the appropriate solution for their business.

2. Non-residents

Most non-residents have three options when importing goods into Mexico:

(1) List the final buyer as the importer of customs record

(2) Hire a third-party agency authorized to import goods into Mexico

(3) Form and register a local Mexican entity as the importer before the tax authorities

In either case, the importer must have an RFC.

Each situation is different, and sellers should consult with a customs broker, legal counsel, or both to determine the most appropriate solution for their business.

Acquisition channels

1. Register on Mexico’s tax website

The link is: www.sat.gob.mx. Since the website is in Spanish, if you need to register yourself, it is best to find a colleague who knows Spanish to do it.

2. Find an agency to register

Relevant agency companies will be more familiar with similar businesses, so it will be more reliable and accurate to register with them. Of course, the specific price also depends on the price. You can make a decision after evaluating the cost-effectiveness.

3. Find a freight forwarding company with an RFC tax number to cooperate with

If you have a channel to ship goods to Mexico, the freight forwarding company usually has a corresponding RFC tax number. However, they charge a certain fee for the use of their tax number for sellers, which is usually charged annually. If you ship a large volume, you can also negotiate with them for a preferential policy of free use of the tax number.

Registration Information

1) You need to bring the RFC pre-registration certificate

2) A certified copy of the company's articles of incorporation

3) Original copy of the company's domicile certificate

4) A certified copy of the notarial authorization of the legal representative

5) Original ID of the legal representative

How to upload to Amazon backend

1. Access your account in Seller Central.

2. In Settings, select Account Information.

3. In the fiscal information, click on the RFC number.

4. Enter the RFC number in the corresponding field and click Update Actualizar.

Q&A

Q: Do all sellers need to register an RFC number?

According to Mexico's new tax reform document, those who meet one of the following requirements are obliged to register for an RFC number:

Have warehouses in Mexico (whether FBA or overseas warehouses)

Have a registered company in Mexico

Native Mexican citizens

Foreigners with legal residency in Mexico

Q: Do NARF and MFN sellers need to provide RFC numbers?

NARF and self-shipping sellers will not be affected and do not need to provide any.

Q: Can I use the RFC number provided by the freight forwarder?

Generally speaking, it is not recommended for sellers to use the RFC number provided by the freight forwarder. There will be many different sellers' store accounts under the freight forwarder's RFC number. Although there is no document showing that the RFC number will lead to the association of Amazon backend accounts, there will be great account risks. After all, although the seller uses the RFC number to clear customs, the Amazon backend still needs to upload the RFC number, and according to Amazon's official notification requirements, the RFC number registration information must be consistent with the Amazon account backend legal person information.

Q: Can I apply for a Mexican RFC number with a Chinese business license?

To apply for a Mexican RFC number, you must provide a company address in Mexico. Currently, there are many rumors online about helping sellers use Chinese company business licenses to apply for a Mexican virtual RFC number. There is only one way to apply for a Mexican RFC number.

Q: What is the relationship between the RFC number and the IVA number?

The RFC number can be understood as the tax number of a company/individual, while the IVA number is the value-added tax number. The RFC is for all Mexican companies and citizens, while the IVA is for the e-commerce platform market. There is no necessary connection between the two.

Q: What happens if the RFC number information is inconsistent with the seller's account information?

If the RFC number information is consistent with the seller's account information, it will be treated as having no RFC number:

★ Amazon withholds 100% of the VAT arising from your sales

★ Amazon withholds 20% of your monthly sales revenue as income tax

★ These two taxes will be paid to the Mexican government through Amazon and are non-refundable

Q: When does the tax withholding begin?

Sales orders before June 1st do not need to pay taxes, and the tax will not be retroactive. The tax reform will take effect on June 1st. If the seller has not uploaded the RFC, Amazon will collect 36% tax (20% income tax ISR, 16% value-added tax IVA) on the seller from June 25th. However, some sellers have reported that the platform has begun to withhold 16% value-added tax IVA.

Q: What are the differences in tax policies between individual sellers and corporate sellers?

Corporate sellers: If you do not upload an RFC, Amazon will collect 20% income tax and 16% VAT on your behalf. After uploading an RFC, Amazon will no longer collect income tax and will refund 100% of the VAT.

Individual sellers: If you do not upload an RFC, Amazon will collect 20% income tax and 16% VAT on your behalf. After uploading the RFC, Amazon will collect a tiered income tax ranging from 0.4% to 5.4%, and refund 50% of the VAT.

The main purpose of Mexico's new tax reform is to require e-commerce platforms and sellers to jointly bear the tax responsibility for sales. Today, all major digital platforms have been given the obligation to withhold VAT, requiring all platforms to register with Mexico's RFC, otherwise Amazon will automatically charge sellers 16% of their sales IVA and 20% income tax on the platform. This practice is similar to the earlier French new VAT bill. The RFC is filed with the tax bureau. If the seller fails to pay taxes or pays taxes late, it will affect the seller's account on the platform.

References

• 1. Importer registration RFC status: Sohu.com [reference date 2018-03-17T16:00:00.000Z]
• 2. Guide to Mexican Tax Number RFC Registration, Summary of Common Questions about RFC Registration: Baijiahao [Reference Date 2020-06-01T16:00:00.000Z]