This help page covers Mexico income tax (ISR for its acronym in Spanish ‘Impuesto Sobre la Renta’) withholding only. VAT (IVA) a buyer pays on products you sell and on seller fees for services you purchase from Amazon are unrelated to income tax ISR withholding. Please see the Mexico Marketplace VAT (IVA) Collection FAQ and Mexico VAT on Seller Fees for information.
The Mexico Government introduced tax reform legislation effective June 1, 2020 that requires Amazon to remit Mexico Income Tax (ISR) on eligible seller accounts and orders worldwide. The ISR withholding rate is based on information you provide to Amazon. If you and/or your business are physically located in Mexico and/or you store inventory in Mexico, and/or products you sell are shipped from and to a Mexico address, your account(s) may be subject to Mexico ISR.
Once a week, Amazon will review your account information, Registro Federal de Contribuyentes identification number (RFC ID) registration type and validation status to determine if ISR withholding is necessary. If necessary, your month-to-date earnings will be used to update your ISR withholding in your Account Level Reserve (unavailable balance) accordingly. The reserve estimate is designed to avoid or reduce the chance of an unexpected negative account balance when ISR is remitted to the Mexico Government and charged to your account.
Any ISR amount withheld in excess of your ISR obligation will be released to your seller account. All ISR remitted to the Mexico Government will be reflected in your account payment reports and withholding certificate uploaded to your account during the first week following each month.
Please review our FAQ’s below for complete details on how ISR may apply to your selling account(s), updating your RFC ID, reviewing withholding schedules and more.
Once a week, Amazon will update the ISR withheld in your Account Level Reserve (unavailable balance) based on your current RFC ID status, account and order information available in Seller Central, and month-to-date earnings using the ISR withholding schedule below.
Valid and verified RFC ID
Pending Validation, Invalid, Incomplete, No RFC
During the first week following each month, Amazon will use your current RFC ID status, account information and prior month earnings to determine the amount of ISR to be deducted from your selling account and remitted to the Mexico Government. The withholding certificate represents the amount of ISR remitted to the Mexico Government on your behalf and cannot be refunded by Amazon.
To register or update your RFC ID in your seller account, follow these steps:
Your RFC ID will not be considered for a reduced income tax (ISR) withholding until the validation process is complete. During validation, you may also continue to see a banner in Seller Central requesting updated information. Please avoid incomplete, missing or mismatched information that may require resubmission of your registration, with unexpected delays.
Due to the tax reform legislation effective June 1, 2020, Amazon became a withholding agent and is legally obliged to remit Mexico Income Tax (ISR) based on your RFC ID registration.
Within Amazon, your RFC ID is used to determine if weekly ISR withholdings and/or month end ISR payment is due to the Mexico Government. We also use your RFC ID on your monthly withholding certificate and seller fee invoice as necessary.
When an RFC ID is not provided to Amazon, the Mexico Government requires Amazon to apply and remit the maximum ‘Non-Registered’ withholding rate. This may lead to an unexpected withholding that may not apply to your business. Additionally, any withholding certificate will use a generic RFC ID indicating that none was provided to Amazon.
No. At this time, only the RFC Mexico tax registrations apply to online selling and is the only registration Amazon is able to accept and consider towards income tax (ISR) withholdings.
An incomplete or unvalidated RFC ID will result in the maximum ‘Non-Registered Sellers’ withholding rate being used until your information is provided in your account and validated. Once remitted to the Mexico Government, there is no option for a refund from Amazon.
Any information you have provided in your account may be used in our ISR withholding determination.
Seller account information that may be used for ISR determination are billing information, banking information, credit card information, ship from and shipping template address for product offers, and any other identify information supplied to Amazon.
Yes. By law, Amazon is required to calculate ISR withholdings for any seller with Mexico indicators on any of their selling accounts and/or orders, even when conducting business outside of Mexico.
ISR applies to all sellers who sell on any Amazon store and have Mexico indicators attached to their account, store inventory in or fulfil orders from Mexico (applies to both merchant fulfilled and fulfilment by Amazon orders).
It depends on your previous registration type. To ensure current information is available to Amazon, review your RFC ID information in Seller Central to confirm completeness and identify any additional information that may be needed, such as your CSF (Constancia de Situación Fiscal) document.
Providing your RFC ID in Seller Central will apply to all Seller Central accounts linked together (North America Unified Account). If you have accounts that are not linked, you may need to update your RFC ID on those accounts separately.
The ISR remittance to the Mexico Government and charge to your account will typically occur within the first week of the new month. The amount charged will be shown on your Payment Transaction View.
You can find the amount of ISR remitted and charged to your account by:
Your Mexico ISR withholding certificate for the previous month will typically be uploaded to your Tax Document Library during the first week of each new month.
The Mexico withholding certificate is only created when Amazon remits income tax and/or product IVA withholdings to the Mexico Tax Authority. If all ISR and/or product IVA withheld throughout the month is released from your Account Level Reserve and/or returned to you, an invoice will not be created.
Amazon is required to remit ISR withholdings based on the information available in your selling account at the time ISR was charged.
At the time your account was charged, information from your account, orders or inventory location associated your account with Mexico and indicated the ISR charge was required per Mexico tax law.
ISR remitted to the Mexico Government cannot be refunded by Amazon.