Mexico value-added tax (VAT) frequently asked questions

Mexico value-added tax (VAT) collection on digital services provided to Mexico residents.

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 1 June, 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:

• Log in to Seller Central.
• Under Settings, click Account info.
• In the section Tax information, click RFC ID.
• Click Update.
• To exit back to your Account info page, click Back.

To learn more, or understand how this may impact your Selling on Amazon account, visit the Mexico Tax Office website.

How does Mexico VAT apply to my Selling account?

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%.

How do I obtain a Mexico RFC ID?

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 advisor.

I am no longer a resident of Mexico, and I have updated all my information to reflect my current address. Can Amazon refund previously charged Mexico VAT to my seller account?

Amazon is required to charge and remit Mexico VAT based on the information in your seller account. At the time that the VAT was calculated and collected, Amazon had enough information to associate your account with Mexico and cannot refund the VAT charged.

I am not a Mexico resident; will Amazon charge my account Mexico VAT on fees?

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 advisor to help you understand if you have any VAT obligations in Mexico.

How is Mexico VAT charged?

Amazon will charge all Mexico sellers a standard rate of 16% VAT on Selling on Amazon fees.

I updated my information to reflect my current address, which is outside Mexico. Why is Amazon continuing to collect Mexico VAT?

Amazon calculates Mexico VAT on fees when an order is placed, and collects it when an order is shipped. If the information that you provided at the time of shipment indicated that 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.

How do I receive a refund for previously charged Mexico VAT on my seller account?

If you believe that you were incorrectly charged, you may request a refund for previously charged Mexico VAT.

To request a refund:

1. Contact Amazon Seller Support through the Contact us form.
   
   1. Click Selling on Amazon.
   2. Click Other issues and then click Tax questions.
   3. Under What are your tax questions, request a refund of the Mexico VAT charged to your seller account.
2. You will receive an update for your case when your request has been processed. The update will provide the estimated date when you can expect to receive a refund in your seller account if your request was approved.

Will Amazon provide me with an invoice for any Mexico VAT collected on Selling on Amazon fees?

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.