Amazon Latin America Compliance _ Mexican RFC and VAT _ Brazilian PRC Regulations and Corporate Tax System

Amazon Latin America Station (Mexico & Brazil Station)

Mexican RFC, Brazilian PRC regulations,
Brazilian corporate tax system and solutions

Mexico's RFC Taxpayer Tax Identification Numbers and New Withholding Tax Regulations

MX RFC & IVA ISR Introduction

What is a Mexican RFC taxpayer tax identification number?

Since June 1, 2020, the Mexican government introduced new tax reform regulations requiring Amazon to pay taxes to the Mexican government as an income tax and VAT withholding agent for sellers' total monthly sales.

The Mexican RFC Tax Identification Number (Número del Registro Federal de Contribuyentes RFC Tax Identification Number) will determine the monthly VAT and income tax withholding amounts calculated by Amazon.

The Mexican RFC is a necessary prerequisite to enable local FBA in Mexico.

Mexico RFC Tax ID Solution

Option 1: Register the Mexican RFC through an offshore company

Benefits:

More flexibility in tax processing. Since the business entity is overseas, you can be more flexible in your tax planning.

The registration threshold is relatively low. A Chinese company is directly used as the main body to register. There is no need to set up a physical company in Mexico. At the same time, it also means a simpler registration process

Option 2: Register an RFC by setting up a physical company in Mexico

Benefits:

The timeliness of RFC registration is more guaranteed. Since it is a local entity registration, the process is more standardized and controllable.

It is more advantageous in terms of cost management. Local companies can deduct VAT on imports, which is especially important for sellers who have been deeply involved in the Mexican market for a long time.

Local company status can provide necessary qualification support for certain categories of product certification, such as some healthcare products and infant toys

In order to support more sellers to choose a local company plan, Amazon has specially launched the latest special subsidy program to subsidize sellers up to 100% (about $6,000) of registration fees. For details, please consult the Mexico account manager.

What are the new Mexican withholding tax regulations

As of January 1, 2026, Mexican tax law requires Amazon to withhold VAT and income tax from your sales. The amount withheld depends on whether you have registered a Mexican Tax Identification Number (RFC) with the Mexican Tax Service (SAT) and uploaded this information to Seller Central, the tax system, and the location of your bank account. This change is a mandatory adjustment based on Mexico's 2026 Tax Reform Plan.

Effective date of the new Mexican withholding tax regulations

January 1, 2026

New Mexican withholding tax rules apply to sellers

This new rule only applies to sales activities that ship locally from Mexico. Delivery within Mexico means:
● Sold by sellers on the amazon.com.mx marketplace
● Shipped from an address (origin) within Mexico (seller-self delivery or Fulfilment by Amazon (FBA)))
● Delivery to addresses (destinations) within Mexico

* If you use Amazon Logistics for remote delivery or self-delivery from an address outside of Mexico, the shipment is outside of Mexico and is not affected by the new regulations.

Key updates to Mexico's new withholding tax regulations

*Withholding Tax Rate: The withholding tax rate varies depending on your RFC registration type, verification status in Seller Central, and the location of the beneficiary bank account:

Tax Law (from January 1, 2026)
● Withholding VAT: 8.0%
● Withholding income tax: 2.5%

Tax Law (from January 1, 2026)
● Withholding VAT: 16.0%
● Withholding income tax: 2.5%

Tax Law (from January 1, 2026)
● Withholding VAT: 16.0%
● Withholding income tax: 0%

Tax Law (from January 1, 2026)
● Withholding VAT: 16.0%
● Withholding income tax: 20.0%

Key issues in Mexico's new VAT regulations

Withholding process: Starting January 1, 2026, Amazon will process VAT and income tax deductions for relevant sales generated during this month within the first 10 calendar days of the following month. For example, your sales activity during January will be withheld within the first 10 calendar days of February, and VAT and income tax on future monthly related sales will be deducted accordingly.

Bank account change issues:
The payee account type will also determine your withholding tax rate (whether you have a local bank collection account in Mexico or a foreign bank account).
a. If you are unsure whether your beneficiary bank account is a local account, please check with your bank account provider.
b. If you want to change your bank account, you can go to the settings through Seller Central, select the payment information in the account information, and modify the deposit method.

Withholding certificate:
Your withholding certificate for the previous month is published to your Tax Document Library (Mexican Tax Invoice) within the first 10 days of each month. You can access the following path queries in Seller Central:
Under the [Menu] tab > select [Report] > click [Tax File Library] > select the [Mexican Tax Invoices] tab > find the [Withholding Certificate (Withholding Certificate)] with the corresponding start and end dates > click the [PDF or XML] link to download
Note: We only create your withholding certificate if we pay income tax (ISR) and/or value-added tax (IVA) deductions to Mexican tax authorities. If we don't pay, a withholding certificate will not be created.

More resources:

Mexican Tax Withholding Requirements

Mexico VAT Collection FAQ

Mexican income tax withholding FAQ

Talk to the Mexico Station Account Manager to learn more

Brazil Compliance Documents Program (PRC)

BR PRC Intoduction

In July 2023, Brazilian Customs issued new regulations on cross-border e-commerce goods, Programa Remessa Conforme (PRC for short). The project aims to improve compliance for cross-border sales of products to Brazil. Sellers participating in the program must use Amazon's pre-approved carriers to provide package clearance information in advance, collect and prepay import taxes from consumers, and commit to comply with relevant tax and customs compliance requirements.

Priority processing of PRC orders: In PRC cases, sellers can enjoy “green customs clearance” to get faster customs clearance times and packages delivered faster.

Goods import tax exemption: Compared to non-PRC, packages under the PRC channel enjoy certain import tax relief.

PRC operation process at a glance

In order to help all Brazilian sellers better comply with the new PRC regulations and enjoy the series of dividends brought by the new regulations, we have specially compiled the following 4 key logistics steps. Please pay attention!
Starting August 1, 2024, if your logistics process still does not meet these requirements, Amazon will manage it in accordance with the platform's store health performance requirements.

First step

Please set the price of your product according to the requirements

You must prepay Brazilian import duties and ICMS* (Goods and Services Transfer Tax) to the carrier for customs clearance. Therefore, the product sales price you set up in Seller Central must include import duties and ICMS.

*ICMS is Brazil's tax on the circulation of goods and services, also known as Brazil's “value-added tax”. ICMS+D20 is levied when goods and services are in circulation (including import and export)

Second step

Please select a carrier and pay attention to shipping requirements

Orders must be shipped by a carrier pre-approved by Amazon. Amazon's pre-approved carriers include: Tri-State Express (SFC), Zhongjin (Centex/Brasil), and Weishi Logistics (360Lion).

● You can also check the most current list of carriers by visiting the Seller Central Help page. If the carrier you are currently using is not on the approved carrier list, you should change the carrier and select one from the list. This is a regulatory matter, and you will not be allowed to use a different carrier to ship Amazon orders to Brazil.

● All orders delivered to Brazil must be made through the PRC channel. Please communicate with your carrier to make necessary operational adjustments according to PRC requirements. You will need to use a specific PRC waybill for shipping, and your carrier can assist you.

Step 3

Customs Clearance Information Submission and Authorization

Before the package arrives in Brazil, you must submit all the information required for Brazilian customs clearance to the carrier for smooth customs clearance. The carrier must obtain accurate information about the order from you. Amazon will integrate the system with approved carriers. Once the system is integrated, you must authorize your carrier to obtain order information directly from Seller Central. For specific system setup methods, please consult your logistics carrier for technical support.

Step 4

Fill in the correct carrier and tracking number

● Select the correct carrier and provide a valid tracking number. You should ensure that the tracking number is in the correct format with your carrier. If you are unsure about the carrier's tracking number format, contact your carrier to confirm this information.

● If your carrier uses local terminal logistics after the package arrives in Brazil, you should not use the final logistics service provider's waybill number; you should always use the international carrier's waybill number. By providing the correct carrier/tracking number information, you will avoid VTR issues.

● If you need more information about VTR, you can click here to visit the VTR help page.

Brazil's Local Corporate Tax System

BR Local Tax Compliance Policies

If you use FBA delivery services within Brazil, then you need to register a local Brazilian company and meet your tax obligations. Local companies have supporting corporate tax numbers, and all orders sold through Amazon's FBA delivery channel will be invoiced to the consumer by default and sales will be included under the corporate tax ID.

1. How do Brazilian companies pay taxes?

If you set up a domestic company in Brazil, you'll need to handle a range of federal, state, and municipal taxes. The exact way you pay taxes depends on the size of your company and the tax regime you choose. The tax system for Brazilian companies can be divided into three types:

Simples Nacional
(simplified national system)

It is a simplified tax system for small and micro enterprises, with an annual income cap of R$4.8 million.

Its biggest feature is that it integrates multiple federal, state, and municipal taxes into a single levy form and is paid in one go through DAS (Uniform Collection Document). The tax rate varies according to industry and turnover. The overall tax burden is low, and the reporting process is simple, making it particularly suitable for small-scale operators.

Lucro Presumido
(estimated profit system)

For businesses with an annual revenue of up to R $78 million, a preset profit margin is used to calculate taxable income.

Different industries have different estimated profit margins (such as business 8%, service industry 32%), and there is no need for detailed accounting records; only basic revenue records are required. This system is relatively simple to operate and is suitable for medium-sized enterprises, but it may not be suitable for enterprises with large differences between actual profit margins and estimated profit margins.

Lucro Real
(Actual profit system)

This is a system of taxation based on the actual profits of an enterprise, requiring complete accounting records and more complicated tax filing procedures. The overall tax rate is approximately 34% (including 15% corporate income tax, 10% surtax on excess profits, and 9% social contribution tax).

Some large enterprises or specific industries are required to adopt this system. Although management costs are high, it can accurately reflect the actual operating conditions of the enterprise, which may be more beneficial to enterprises with large expenses.

2. Brazilian Company Tax Solution

You can choose a service provider that provides tax solutions for Brazilian companies through the Amazon SPN Service Provider Network, or contact the Brazilian account manager for more information.

Talk to Brazil Account Manager to learn more

Additional resources

Useful Resources

Amazon Mexico & Brazil Site Overview

Amazon SPN Service Provider Network

Frequently asked questions

Mexican RFC Taxpayer Tax Identification Numbers & New Withholding Tax Regulations Related

How is my withholding tax rate determined?

First, you must generate sales activities that ship locally from Mexico; secondly, please determine the corresponding withholding tax rate based on your RFC registration type, verification status on seller platform, and recipient bank account location. For details, see “Key Updates on New Mexican Withholding Tax Regulations”

What does local delivery mean in Mexico?

● Sellers self-deliver through Amazon Logistics FBA or addresses within Mexico, all of which are shipped locally from Mexico.
● If the seller uses Amazon Logistics for remote delivery or self-delivery from an address outside of Mexico, the shipment is outside of Mexico and is not affected by the new regulations.

*Amazon Logistics remote delivery means that you use inventory stored in Amazon's US fulfillment center (FBA warehouse) to deliver customer orders from Amazon Mexico without having to store them separately in Mexico.

What are local bank accounts and foreign bank accounts?

● A local bank account is an account with a CLABE number opened in a local bank in Mexico.
● A foreign bank account is a bank account that has not been opened in a local bank in Mexico or that does not have a CLABE number.

*If you're unsure if your bank account is local, check with your bank account provider.

Where can I see VAT reconciliation adjustments (charges)?

If your RFC status changed during the month, we will reconcile the amount of VAT due to you or due to the Mexican tax authority (as applicable) during the first week following the end of each month. [Product VAT adjustments] (depending on your RFC status change for the current month) will be separately credited or debited and shown in your payment report.
In the transaction summary, the transaction type will be shown as a product VAT adjustment.
In the date range report and settlement report, you'll see the following information:
* The [Tipo (Type)] column will be adjusted.
* The “Descripción (Description)” column will adjust VAT for the product.

Will sales before January 1, 2026 be implemented according to the latest policy?

The new regulations only apply to sales on and after January 1, 2026, and sales generated prior to this date (regardless of your previous withholding status) will remain the same.

What happens if I stop using Amazon Logistics FBA?

If you don't use Amazon Logistics FBA, you may not be able to enjoy significant benefits such as the Prime logo and fast delivery. Amazon recommends that you:
Self-check or update RFC ID information in a timely manner to ensure that the correct tax rate is applied
Continue to use Amazon Logistics FBA to enable rapid business growth

What happens if my RFC ID status changes during the month?

On the last day of each month, Amazon will use the verified RFC ID type and status in your account to determine the amount of product VAT and income tax to be deducted from your selling account and paid to the Mexican tax authorities for the next month's sales activity.

Who do I contact if I have questions about regulations?

If you have concerns about regulations, Amazon recommends that you contact your legal advisor or tax advisor. If you have any further questions or concerns, feel free to contact Amazon Seller Support.

Related to the Brazilian PRC and the local corporate tax system

How should I price the product under the PRC's rule logic?

The following is a guide to fees based on the new rules. The example of calculation below considers an hypothetical exchange rate and ICMS tax rate. Ensure you are using the correct information applicable to your situation to avoid problems during customs clearance. You can also simulate import duties and taxes using this calculator.

Package sales value not exceeding USD 50: collect 20% as Import Tax over the total package value (sales price + shipping + insurance), plus ICMS/State VAT. Example:
Exchange rate: USD 1.00 = BRL 5.10
Order amount: USD 10.00 = BRL 51.00
Import duty (20%): 51.00* 20% = BRL 10.20
ICMS (17%): ((51.00+10.20)/(1-17%))*17% = BRL 12.53
Total duties and taxes = 10.20 + 12.53 = BRL 22.73
Total cost to consumer = 51.00 + 22.73 = BRL 73.73

Package sales value greater than USD 50: collect 60% as Import Tax over the total package value (sales price + shipping + insurance), deduct fixed amount of USD 20.00, and then add ICMS/State VAT on the final duty tax amount.
Exchange rate: USD 1.00 = BRL 5.10
Order amount: USD 100.00 = BRL 510.00
Import duty (60%): 510.00* 60% = BRL 306.00
Fixed Discount (USD 20.00) = BRL 102.00
Final Import Duty = 306.00 - 102.00 = BRL 204.00
ICMS (17%): ((510.00+204.00)/(1-17%))*17% = BRL 146.24
Total duties and taxes = 204.00 + 146.24 = BRL 350.24
Total cost to consumer = 510.00 + 350.24 = BRL 860.24

I have completed the Brazilian company registration and Amazon account registration. What else do I need to do?

After you have registered your account, set up your payment and credit card, you will need to set up a tax invoice (Invoicer). Amazon FBA will invoice on your behalf. According to the invoice information set up by the store, the back-office system will directly link to the Brazilian Taxation Bureau system to make a true declaration. If the settings are wrong, FBA will not be able to ship. All invoice setup information can be obtained when you have registered a Brazilian company. If the information is unclear, you can ask the service provider or partner to help you register your company. If you have operational questions, please contact your Brazil Account Manager.

I want to do FBA in Brazil, but I'm not sure what type of tax system I need to choose?

We recommend that you first consult a professional Brazilian accountant or tax advisor, as tax options need to be assessed based on your specific business situation. Choosing a tax system requires considering factors such as your estimated annual turnover, expected profit margin, business size, and accounting management ability. Amazon will provide relevant platform support, but specific tax options require detailed discussions with a professional tax advisor.