Do foreigners need a RFC to sell on Amazon Mexico?
Foreigners selling on Amazon Mexico don’t necessarily need an RFC (Registro Federal de Contribuyentes) due to recent changes that allow Amazon to collect sales tax on their behalf. However, having an RFC can simplify the process and offer tax benefits.
To obtain an RFC, follow these steps:
- Register with SAT: Visit a SAT office in Mexico or register online with a valid visa or residence permit.
- Prepare Documents: Gather identification (like a passport), proof of address, and your home country tax ID.
- Complete Application: Fill out the SAT application form.
- Receive RFC: After processing, you will receive your RFC.
The RFC is no longer mandatory as long as sales tax is collected and paid. If you don’t provide an RFC, Amazon Mexico will manage tax collection and remit it to the government, so you won’t need to submit any documents.
It’s wise to consult a tax professional or legal advisor familiar with Mexican tax laws to ensure compliance and understand the benefits of having an RFC when selling on Amazon Mexico.
Do foreigners need a CSF to sell on Amazon Mexico?
RFC was once required by Amazon Mexico, but now FBA sellers must submit a CSF (Constancia de Situación) along with the RFC. Only registered companies can obtain a CSF, which can be challenging for international sellers.
The CSF facilitates sales tax collection for the Mexican government, meaning the RFC is no longer mandatory as long as sales tax is collected and paid.
If you don’t provide an RFC or CSF, Amazon Mexico will collect the sales tax and remit it to the government, so you don’t need to submit either document.
What is RFC and CSF
The CSF (Constancia de Situación Fiscal) and RFC (Registro Federal de Contribuyentes) are both important tax-related documents in Mexico, but they serve different purposes:– RFC (Registro Federal de Contribuyentes)
Definition: The RFC is the Federal Taxpayers Registry number assigned by the Mexican tax authority (SAT – Servicio de Administración Tributaria) to individuals and entities for tax identification purposes.
Purpose: It identifies taxpayers in Mexico for tax reporting and compliance. Every individual or business that conducts economic activities in Mexico must have an RFC.
Usage: The RFC is required for various transactions, such as opening bank accounts, filing taxes, and registering businesses. It is also necessary for obtaining the CSF.– CSF (Constancia de Situación Fiscal)
Definition: The CSF is a certificate that provides a summary of a taxpayer’s status within the tax system, including their RFC and information about their tax obligations.
Purpose: It serves as proof of tax registration and compliance with the Mexican tax authority. It details the taxpayer’s situation concerning their tax obligations, including whether they are up to date on their taxes.
Usage: The CSF is particularly important for businesses and sellers (like those on Amazon) to demonstrate tax compliance when required by platforms or authorities.What is the difference between CSF and RFC
Nature: The RFC is a unique tax identification number, while the CSF is a certificate that outlines a taxpayer’s tax situation.
Requirement: You need an RFC to obtain a CSF; however, the CSF is not necessary for all transactions but is often required for specific compliance purposes, like selling on Amazon Mexico.
Function: The RFC identifies the taxpayer, while the CSF provides a snapshot of their tax status.
In summary, the RFC is essential for identification, while the CSF demonstrates compliance with tax obligations in Mexico.
However, the purpose of CSF is to collect sales tax so that Mexico government has additional source of income. Therefore, RFC is not mandatory any more, as long as sales tax can be collected and be paid to the government. Amazon Mexico will collect sales tax and remit to Mexico government if you don’t provide RFC and CSF.
It also implies, you don’t have to provide RFC and CSF. Let Amazon Mexico do the tax collection and reporting.
Here is how:
Step 1): Go to your Tax settings, as show in figure 1.
Figure 2. Tax setting on Amazon Mexico
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Step 2: Answer to to questions: “Do you have a RFC ID” or “Do you have CSF”
Figure 3. Answer no to question about RFC or CSF
Step 3: Go to FBA shipment, try to create a FBA shipment to Mexico. If allows you to create FBA shipment, then you are all set. Make sure you use a Mexico address as “Ship From” (very important). You can find the Mexico address on the dashboard of our customer portal after login.
Figure 4. Ship from address must a Mexico address
Any further questions, please contact us.