What is an RFC in Mexico?
The RFC number (Registro Federal de Contibuyentes) is a unique registration number allocated by the Mexican Tax Administration (El Servicio de Administración Tributaria). The individual length of the RFC is 13 digits, and the length of the company RFC is 12 digits.
What is the Mexican RFC used for?
In Mexico, the RFC number is used to track business transactions, payments, and expenses for taxation reporting objectives.
In Mexico, Individuals can also use their RFC number to claim specific tax rebates that their employers do not handle, for instance, specific medical expenses.
Why should I register for the RFC to do business with Mexico ?
The Mexican Government has implemented new legislation assigning non-resident companies, e.g. Amazon, giving digital services to start collecting Mexico VAT on these services when they are given to Mexico-based resident Sellers.
The primary objective of Mexico’s new tax law reform is to expect e-commerce platforms and sellers to together assume the tax liability of sales. Presently, primary digital platforms have been given the responsibility to withhold value-added tax, compelling all platforms to register for Mexico’s RFC number, otherwise, Amazon will charge sellers 16% of the sales IVA (Individual Voluntary Arrangements) on the platform and 20% of income tax.
The RFC number is documented with the Mexico tax bureau. If the seller has tax non-payment and late tax payment, it will impact the seller’s account on the platform. Therefore, from the viewpoint of the Mexico reform of the new tax law, sellers have to comprehend tax in a timely manner.
How do I obtain a Mexico RFC number?
To apply for your RFC number in Mexico, you have to visit your local SAT office in person. SAT only accepts applications by preliminary appointment. You can request your appointment online.
How to register for RFC in Mexico
Note that the processes explained here do not apply to companies selling on Amazon only, but also to any foreign company aspiring to register and do business in Mexico.
The steps to follow to apply for the RFC number in Mexico are outlined below:
- Submitting an application: The legal representative of the business will submit a registration application, and the application must be submitted within a few months from the day after the obligation to declare, or from the day after the start of issuing tax receipts for their business.
- Where to submit the application: the pre-registration or Pre-inscripción must be submitted on the Mexican tax service network, and the registration, on-site at the tax bureau office. After the applications submitting, you must apply for an appointment for Cita previa on the Mexican tax service network, and then submit the application on-site at the tax bureau office with the appointment and pre-registration.
After the application for registration of a tax number is submitted, the Mexico tax bureau will give the following certificate:
- Application form for RFC registration.
- The only certificate Acuse único for RFC registration, which contains the tax identification card and the two-dimensional barcode.
Requirements for RFC registration in Mexico.
At the Mexican Tax Bureau office: Once you have submitted a pre-registration on the Mexican tax service network in advance, you have to bring the following;
- the RFC pre-registration certificate,
- a duplicate of the company’s articles of incorporation, the company’s domicile certificate,
- duplicate of the authorized notary certificate of the legal representative
- the legal representative’s ID, and
- all individuals shown in the company’s articles of association must have a valid RFC
If you are new to Mexico and you plan on working or doing business in the country, you need an RFC number. Obtaining a Mexico RFC Number is not a hard thing to do and once it is issued to you, you can use the number forever since it doesn’t expire.
For more information regarding how to get your Mexico RFC number, let’s go ahead and contact your Damalion experts now.
