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RFC, VAT, and Income Tax Withholding on Amazon Mexico

Updated over a month 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.

SmartRepricer does not calculate, apply, or validate tax rules.

The Income Tax, VAT, Goods and Sales Taxes ( Global Sales Tax ) field in SmartRepricer is used to reflect the actual total tax rate charged by Amazon for the target marketplace, so repricing decisions are based on real net profit.

How RFC Affects Global Sales Tax on Amazon Mexico

The total tax rate applied by Amazon Mexico may vary depending on:

  • Whether a valid RFC is registered in your Amazon Seller Central

  • Whether the seller is classified as a business or an individual

  • Whether the seller is based inside or outside of Mexico

As a result, different sellers may see different effective tax rates, such as 0%, 10.5%, 13.79%, 16%, 36%, or higher combined rates.

How SmartRepricer Uses Global Sales Tax (GST)

In SmartRepricer, Global Sales Tax (GST) represents the total tax rate applied by Amazon on each sale for the selected marketplace.

This value is included in repricing calculations to:

  • Reflect real tax deductions in product costs

  • Calculate accurate minimum and maximum prices

  • Ensure automated repricing protects your profit margins

SmartRepricer does not determine tax rates. It relies entirely on the GST value you enter.

Why Entering the Correct GST Value Matters

If the Global Sales Tax value entered in SmartRepricer does not match the rate applied by Amazon:

  • Repricing decisions may be based on incorrect margins

  • Minimum price protection may not reflect real costs

  • Expected profit levels may be inaccurate

To ensure correct repricing behavior, we recommend:

  • Reviewing your Amazon settlement or order reports

  • Identifying the effective total tax rate applied by Amazon

  • Entering that rate into the Global Sales Tax (GST) field in SmartRepricer

Summary

  • Amazon applies VAT and income tax withholding based on RFC status

  • SmartRepricer does not calculate or validate tax rules

  • Global Sales Tax ensures repricing is based on net profit

  • Always enter the actual tax rate applied by Amazon

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