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Understanding RFC, Income Tax, and VAT on Amazon Mexico

Updated over 2 months ago

When selling on Amazon Mexico, Amazon may apply VAT and income tax withholding to your orders depending on your RFC (Registro Federal de Contribuyentes) status and seller profile.

These taxes are calculated and withheld directly by Amazon, not by SellerRunning.

SellerRunning does not determine tax rates. Instead, it uses the tax values you enter to calculate accurate costs, profit, and pricing for your products.

How RFC Affects Tax Rates on Amazon Mexico

The tax rates applied by Amazon Mexico can vary based on whether:

  • A valid RFC is registered in your Amazon Seller Central

  • The seller is classified as a business or an individual

  • The seller is based inside or outside of Mexico

As a result, different sellers may see different total tax deductions on their orders, such as 0%, 10.5%, 16%, 36% or higher combined rates.

How SellerRunning Uses Marketplace Sales Tax

In SellerRunning, the Marketplace Sales Tax field is used to represent the actual total tax rate applied by Amazon to your orders.

This value is used to:

  • Calculate product costs accurately

  • Calculate real profit and margins

  • Set correct product pricing based on net earnings

SellerRunning does not validate or apply RFC rules. It simply reflects the tax rate that Amazon applies to your sales.

Why Entering the Correct Tax Rate Matters

If the tax rate entered in SellerRunning does not match the rate applied by Amazon:

  • Your profit calculations may be inaccurate

  • Your pricing strategy may be based on incorrect margins

  • Reported costs may not reflect real deductions

To ensure accurate results, we recommend:

  • Checking your Amazon settlement or order reports

  • Identifying the effective total tax rate applied by Amazon

  • Entering that rate into the Marketplace Sales Tax field in SellerRunning

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