Upload of RFC by Mercado Libre Sellers

What is the RFC Tax Number in Mexico?

Main Uses of RFC:

• Identify taxpayers within Mexico.
• Facilitate tax declaration and payments for businesses and individuals.
• Ensure e-commerce sellers comply with Mexican tax regulations, especially in cross-border e-commerce.

Consequences of Not Registering for RFC:

1. Account Functionality Limitations:
   1. Mercado Libre may impose restrictions on the accounts of sellers who have not uploaded their RFC, potentially suspending their selling privileges, which affects normal store operations.
2. Payment Withholding:
   1. Sellers without an RFC may face higher payment withholding rates, directly impacting their earnings.
3. Tax Penalties:
   1. Operating without an RFC in Mexico may lead to fines and other tax penalties, as well as potential legal disputes.
4. Reduced Buyer Trust:
   1. Adhering to tax regulations helps build customer trust. Non-compliant sellers may be viewed as unreliable by buyers, affecting their willingness to purchase.

How to Register for RFC in Mexico:

1. Application Submission by the Corporate Legal Representative.
2. Where to Submit the Application:
   1. Submit a pre-registration (Preinscripción) on the Mexican Tax Service website (SAT), then visit the tax office in person to submit the registration.
   2. Schedule an appointment (Cita previa) on the SAT website and present the appointment along with the pre-registration at the tax office.
3. Documents Issued After Registration:
   1. Application form for RFC registration.
   2. Unique proof of RFC registration (Acuse único), which includes the tax identification card (Cédula de identificación fiscal) and a QR code (Código de barras bidimensional).
4. Material Requirements for Registration Application:
   1. If pre-registration was submitted online, the following documents are required at the tax office:
      • RFC pre-registration proof.
      • Certified copy of the company's incorporation documents.
      • Original proof of the business address.
      • Certified copy of the notarized authorization letter for the legal representative.
      • Original identification document of the legal representative.
      • Every partner, shareholder, or joint partner mentioned in the company's bylaws must have a valid RFC.

• If the registered entity or joint venture in Mexico has foreign partners, shareholders, or joint partners, they are not required to register their RFC; they use the following universal RFC:
  • Individuals (Personas físicas): EXTF900101NI1
  • Companies (Personas morales): EXT990101NI1

Local Payment Solutions for Mercado Libre Mexico

• Online Account Opening: Available as soon as the same day. Cross-border sellers often face challenges such as numerous documents, complex processes, and lengthy review times. Through PhotonPay, sellers can open a local payment account in Mexico entirely online, saving time and effort, with access available as quickly as the same day.
• Direct Currency Collection: Cost optimization. By connecting directly to the local Mexican clearing network, funds are received in their original currency, reducing foreign exchange losses, with the fastest settlement time of T0, effectively helping cross-border sellers save costs.
• Unified Management Across Multiple Platforms: PhotonPay supports one-stop collection of funds from various cross-border e-commerce platforms, flexibly adapting to multiple business lines simultaneously, aiding cross-border sellers in efficiently managing their businesses in Latin America.