E-commerce platforms in Mexico will apply new tax measures, including VAT collection and ISR.
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From June 1, 2020, withholding taxes on income tax (ISR) and value added tax (VAT) will be applied to your sales in marketplaces such as Free market, Amazon, eBay and others according to the reforms approved by the Senate in 2019.
Mercado Libre reported on its website that the new regulations will apply to all sales of new products made by natural persons as of June. “The operations performed on Mercado Pago that are not related to the sale in Mercado Libre will not be achieved through restraint,” the platform said.
How are the deductions applied?
A percentage is retained on every sale to sellers who are natural persons and sell new products. If you have loaded RFC in Mercado Libre, 8% VAT will be withheld and 0.4 to 5.4% depending on your cumulative income during the day. If you have not loaded the RFC, you will be charged 16% VAT and 20% ISR.
The amounts accumulated during the day are applied according to the following table.
Source: Free market