Attention cross-border merchants: Mexico's latest tax reform has been implemented, and the AliExpress declaration portal is open

Mexico's new tax reform policy has been implemented. What is most worthy of attention for cross-border merchants is that Mexico's RFC tax number, local bank and other information must be declared before January 1. AliExpress has released a declaration portal to help cross-border merchants quickly complete compliance.

Key point 1: RFC tax number must be declared before January 1, otherwise the platform will withhold 20% income tax

The RFC number is a unique identification number assigned to taxpayers by the Mexican tax authorities and is used to track business transactions, payments, and tax reporting .

Previously, the Mexican Tax Administration ( SAT) issued an executive order on October 24 to strengthen trade and tax supervision. The regulations require that non-Mexican legal entities, cross-border e-commerce merchants who hold goods in Mexico and ship and sell goods in Mexico have the obligation to pay relevant taxes in Mexico.

Therefore, cross-border merchants with overseas warehouses in Mexico must provide the platform with the Mexican RFC tax number in a timely manner before January 1. After uploading the Mexican RFC tax number, cross-border merchants can declare it by themselves and be exempted from the 20% income tax withheld by the platform.

Key point 2: Starting from January 1, non-local bank payments will be subject to 16% VAT withheld by the platform

At the same time, starting from January 1, 2025, for orders shipped from overseas warehouses in Mexico by cross-border merchants and paid using non-Mexican local bank accounts, cross-border platforms such as AliExpress will withhold 16% VAT based on sales , and AliExpress will provide withholding receipts.

Key point 3: For merchants with local bank payment information, the platform will notify them to pay the 16% VAT in the near future

Merchants need to prepare a local bank account at the same time and fill it in the local bank collection entrance of AliExpress. After the platform upgrades the local collection service, the merchants can pay by themselves and the platform will no longer be responsible for deductions.

Facing the new tax policy, it is recommended that merchants prepare for price adjustments based on cost calculations . In addition, in order to help cross-border merchants take the lead in completing Mexican tax compliance, the AliExpress service market has launched the RFC registration service, providing multiple service providers for merchants to choose from . At the same time, AliExpress will launch the information declaration function on the merchant backend on December 19, making it easier for merchants to upload Mexican RFC tax numbers and local Mexican bank account information, thus safeguarding the cross-border business of Mexican merchants .

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