One article to understand | How to register for a Mexican RFC tax number?
How to register for a Mexican RFC tax number? article summary
0 1 What is the RFC tax identification number in Mexico?
R.F.C is the abbreviation for “Registro Federal de Causantes” in Spanish, which translates to “Federal Register of Causing” in English. RFC is the registration number that companies must obtain from the Mexican government, which is equivalent to a tax identification number. The personal RFC number is 13 digits long, and the company RFC number is 12 digits long, consisting of both letters and numbers.
In December 2019, the Mexican House of Representatives passed a new tax reform proposal that requires technology platforms that sell goods and services in the digital environment (such as MercadoLibre, Amazon, Uber, Netflix, etc.) to comply with new tax regulations. Among them, Amazon is required to deduct income tax and RFC based on the total monthly sales of its sellers. Starting from June 1, 2020, Amazon will calculate and deduct income tax and send it to the Mexican tax authority. The RFC tax identification number is different from the VAT tax identification number in the European market. When a seller is ready to ship to the Mexican FBA warehouse, they must provide the RFC tax identification number, which must be verified before creating a shipping plan. Without an RFC tax identification number, whether it is an individual or a company, Amazon will deduct 20% of the monthly sales as income tax.
After the announcement of the new tax reform in Mexico, many Amazon Mexico sellers are seeking solutions for obtaining the RFC tax identification number. According to the requirements of the new tax law, we have compiled relevant information for obtaining the RFC tax identification number in Mexico.
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0 2 Do Mexican sellers need to register for an RFC tax identification number?
For Amazon Mexico sellers, it is not mandatory to register for an RFC tax identification number, but it is still recommended to do so. If the seller is not registered for an RFC tax identification number, Amazon will deduct 20% of the income tax and will not refund it. For those who have registered for an RFC tax identification number, companies do not need to deduct income tax, and individuals will have 1% deducted. For value-added tax, Amazon will deduct 16% for sellers who have not registered for an RFC tax identification number. For registered companies, Amazon will deduct the amount for the current month and will fully refund it the following month. Sellers must apply for a refund and can deduct the amount. For individuals, Amazon will deduct the amount for the current month and refund 50% the following month. Sellers must apply for a refund and can deduct the amount. It should be noted that the above information only applies to sellers who have joined before June 1, 2022. For new sellers, they cannot create FBA shipments and make sales until they have uploaded a valid RFC tax identification number.
0 3 Mexico RFC Tax Registration Process
To apply for a tax number for a registered enterprise or legal entity (also known as “Personas morales”) in Mexico, referred to as RFC. After the Mexico RFC tax number is registered, it can be bound to the Amazon background, and Amazon will no longer deduct 20% of business income tax. 1. Applicant Submission: The corporate legal representative submits the application. 2. When to submit the registration application: Within one month from the day after the obligation to declare arises, or within one month from the day after issuing tax receipts for the business operations. 3. Where to submit the application: 1. Submit a pre-registration “Preinscripción” on the Mexican Tax Service website SAT and then submit the registration in person at the tax office. 2. Apply for an appointment “Cita previa” on the Mexican Tax Service website SAT, and submit the application in person at the tax office with the appointment and pre-registration. After submitting the registration tax number application, what certificate will the tax bureau give: 1) Registration application form for RFC. 2) Unique certificate “Acuse único” for registering RFC, which includes the tax identification card “Cédula de identificación fiscal” and the two-dimensional barcode “Código de barras bidimensional (QR)”.
According to the new tax regulations in Mexico, Chinese sellers can entrust local tax agencies in Mexico to act as financial representatives to assist in applying for the Mexican tax number RFC. The information required for Chinese sellers to apply for a Mexican tax number needs to be Hague certified. The validity period for RFC registration is 2-3 weeks after the tax bureau receives valid registration materials. The reporting period is one month, and the reporting frequency is 12 times a year (monthly reporting). Bosses who want to register need to contact Xiao Zhi as soon as possible~
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