If you’re selling on Amazon Mexico via FBA, VAT compliance is mandatory. Mexico uses a system called IVA (Impuesto al Valor Agregado), and all sellers must register for an RFC (Federal Taxpayer Registry) to trade legally.
VAT Rates in Mexico
Mexico introduced VAT (IVA) in 1980.
- Standard rate: 16%
- Reduced rate: 8% (applies in border regions to boost cross-border trade)
- Zero rate (0%) applies to exports, medicines, and certain basic food items.
When Do Amazon Sellers Need to Register?
- Mexican businesses must register for IVA from their very first taxable sale — there is no threshold.
- Non-resident Amazon FBA sellers must also register if:
- You store goods in Mexican fulfilment centres, or
- You sell directly to Mexican consumers through Amazon.mx.
- Digital service providers (apps, streaming, SaaS) selling to Mexican consumers are also required to register for IVA, even without a local presence.
⚠️ For Amazon FBA sellers, there is no registration threshold — registration is required from the first sale.
RFC – Federal Taxpayer Registry
- To register for IVA, sellers must first obtain an RFC (Registro Federal de Contribuyentes) — the Mexican tax ID.
- The RFC is required to:
- Register for IVA
- Issue official e-invoices (CFDI – Comprobante Fiscal Digital por Internet)
- File tax returns with the SAT (Mexico’s tax authority)
Fiscal Representatives & Agents
- Mexico does not require fiscal representatives for non-resident businesses.
- However, many foreign Amazon sellers appoint a local tax advisor to handle RFC applications, IVA compliance, and CFDI invoicing obligations.
Registration & Filing
To register for IVA and RFC, you’ll typically need:
- Business incorporation documents
- Proof of trading activity (Amazon seller account, invoices, contracts)
- ID for directors or business owners
Registration is handled by the Tax Administration Service (SAT). For non-residents, the process is available online and generally takes a few weeks. Once approved, you’ll receive your RFC number and be registered for IVA, which must also be added in your Amazon Seller Central account.
Filing requirements:
- IVA returns are filed monthly.
- Sellers must also issue electronic invoices (CFDI) for every taxable transaction.
- All filings and payments are made electronically via the SAT portal.
Risks for FBA Sellers
- Failure to register results in backdated VAT liabilities, penalties, and account restrictions.
- Non-compliance with CFDI e-invoicing rules can make invoices invalid and lead to fines.
- Amazon requires an RFC and IVA registration for FBA sellers — non-compliance can result in account suspension.
Final Thoughts
For Amazon FBA sellers, VAT (IVA) in Mexico applies from the very first sale. All sellers — domestic and foreign — must register for an RFC and comply with monthly IVA filings and CFDI invoicing. Staying compliant is essential to keep selling smoothly on Amazon Mexico.
👉 Watch the full video https://youtu.be/1c5ubt7a7Pg?si=QjF-tcUqCkCVKzaW where I explain Mexico’s VAT and RFC rules for FBA and cross-border sellers in detail.