It is reported that Amazon Mexico has begun to require VAT registration!

It is reported that recently, some Amazon sellers received emails saying that Amazon Mexico will also start registering VAT.

The email stated that the Mexican tax reform will officially take effect on June 1, 2020. From then on, Amazon will act as the income tax and value-added tax agent for merchants in Mexico, withholding income tax and value-added tax (VAT) generated by their actual business sales activities on Amazon's Mexican site.

Amazon will deduct the VAT and income tax generated by the seller's monthly sales on a monthly basis. The seller's Federal Registration Number (RFC) will determine the amount Amazon withholds each month.

It should be noted that VAT applies to sales orders placed on Mexican e-commerce websites, shipped from warehouses within the country , and delivered to consumers with addresses in Mexico.

In November last year, Amazon launched VAT Services on Amazon 2.0, a VAT compliance solution that helps merchants manage VAT registration and reporting obligations in the UK, Germany and other countries online through the Seller Center.

The 2.0 version update provides merchants with a new status control panel page, where sellers can intuitively see the entire process of VAT tax number registration and track the registration progress in different countries.