The Mexico Government has implemented new legislation requiring non-resident companies, such as Amazon, providing ‘digital services’ to begin collecting Mexico VAT on these services when they are provided to Mexico-based resident Sellers. In this context, digital services provided by Amazon are the Selling on Amazon fees (listing/referral services) and monthly subscription fees. The new rules take effect on June 1, 2020.
Should you wish Amazon to include your Mexico Registro Federal de Contribuyentes (RFC ID) on your tax invoices, we kindly ask you to provide your RFC ID in Seller Central.
To provide Amazon your RFC ID:
To learn more or understand how this may impact your Selling on Amazon account, visit the Mexico Tax Office website.
If you are a seller located in Mexico, Selling on Amazon fees (listing/referral services) charged to your selling account are subject to Mexico VAT at a rate of 16%.
You may be eligible to register for a Mexico RFC ID online by visiting your local tax office website or consult your tax and legal adviser.
Amazon is required to charge and remit Mexico VAT based on the information in your seller account. At the time the VAT was calculated and collected, Amazon had enough information to associate your account with Mexico and cannot refund the VAT charged.
If you are not a resident of Mexico, Selling on Amazon fees through your selling account will not be subject to Mexico VAT collection. Consult your tax adviser to help you understand if you have any VAT obligations in Mexico.
Amazon will charge all Mexico sellers a standard rate of 16% VAT on Selling on Amazon fees.
Amazon calculates Mexico VAT on fees when an order is placed, and collects it when an order is shipped. If the information you provided at the time of shipment indicated you were a resident of Mexico, then Mexico VAT will have been collected. This might have occurred if there were pending orders before you updated your current address and payment information.
Go to Seller Account Information and review each section to ensure that all of your information is complete and accurate.
If you believe you were incorrectly charged, you may request a refund for previously-charged Mexico VAT.
To request a refund:
Amazon will provide a monthly tax invoice to sellers who are charged Mexico VAT on their monthly subscription fees and Selling on Amazon fees. Your monthly invoice will be emailed to the primary email address that we have on file for your seller account.
You can also view your monthly invoices by going to Seller Central > Reports > Tax Document Library > Seller Fee Tax Invoices
You will also see VAT on your listing/referral fees in your Seller Central Selling account, under Order Details page.