Overview

Amazon sellers operating in Mexico need to understand how Value Added Tax (VAT) applies to their selling fees. Since June 1, 2020, Mexican tax legislation requires non-resident companies like Amazon to collect VAT on digital services provided to Mexico-based residents. For Amazon sellers, this means a 16% VAT is applied to listing fees, referral fees, and monthly subscription charges on accounts associated with Mexican residency.

Key Points / What Sellers Need to Know

• 16% VAT rate on seller fees — Amazon charges all Mexico-resident sellers a standard 16% VAT on selling fees, including referral fees and monthly Professional subscription fees.
• Effective since June 2020 — The VAT collection requirement took effect on June 1, 2020, under Mexican legislation targeting digital services provided by non-resident companies.
• Residency determines applicability — VAT is charged based on the residency information in your seller account at the time fees are calculated. Non-residents of Mexico are not subject to this VAT.
• RFC ID integration available — Mexican sellers can add their Registro Federal de Contribuyentes (RFC ID) to their account so it appears on tax invoices.
• Monthly invoices provided — Amazon sends monthly tax invoices to sellers who are charged VAT, delivered to the primary email address on file.

How Mexico VAT Works for Amazon Sellers

Amazon calculates VAT on seller fees at the time an order is placed and collects the tax when the order ships. The determination of whether VAT applies is based on the account holder's residency information at the moment of shipment. This means that if a seller updates their address from a Mexican location to an international one, any orders that were already pending before the update may still incur VAT charges. Sellers who are not residents of Mexico will not have VAT applied to their Amazon selling fees, though they should consult a tax advisor to understand any separate VAT obligations they may have in Mexico.

Adding Your RFC ID to Your Account

Mexican sellers who want their RFC ID displayed on tax invoices can update this information directly within Seller Central. Navigate to the account settings section, locate the tax information area, and enter your RFC ID in the designated field. Having your RFC ID properly recorded ensures that your monthly tax invoices include the correct tax identification details, which is important for your own tax reporting and compliance obligations.