Mexico has taken a decisive step toward tightening tax regulation on digital commerce. The Senate has officially approved the Federal Revenue Law for 2026, which introduces a major shift: beginning January 1, 2026, major online platforms such as Amazon and Mercado Libre will be required to withhold income tax (ISR) and value-added tax (IVA) directly from seller revenues.

Under the new rules, digital platforms are no longer just transaction facilitators—they become tax intermediaries responsible for reporting, withholding, and transferring tax obligations on behalf of sellers. This marks one of the most significant tax reforms in Mexico’s digital economy in recent years.

According to the provisions, platforms must withhold VAT at 50% if a seller provides a valid Mexican tax ID (RFC), and up to 100% if the seller does not. The withholding rate may reach 100% as well when goods are sold by non-resident sellers but delivered within Mexico, or when revenues are routed to foreign accounts. In addition, platforms may be required to give Mexico’s tax authority—SAT (Servicio de Administración Tributaria)—real-time access to transactional data, significantly increasing oversight capabilities.

The reform also strengthens SAT’s audit and enforcement powers. Measures targeting false invoicing, under-reporting, simulated transactions, and aggressive tax avoidance will carry stricter penalties. For both local and cross-border sellers, the era of “light-touch compliance” in Mexico is officially coming to an end.

For businesses operating in cross-border e-commerce and logistics, this reform signals a clear shift.

• The timeline is fixed — all systems, operations, and compliance workflows must be ready before January 2026.

• Responsibilities move upstream — platforms will enforce tax rules at the source, forcing sellers to maintain transparent tax profiles and accurate documentation.

• Costs and risks increase — failure to comply may result in full VAT withholding, blocked payouts, or even suspension of selling privileges.

• Logistics chains must adjust — freight forwarders, warehouses, and last-mile operators will need to align documentation, routing, and invoicing with the new tax data requirements.

  
  
• Seller Withholding Tax Rates Overview
  Sellers with a registered Mexican RFC tax number:
  Individual Sellers (Natural Persons): 2.5% Income Tax + 8% VAT = 10.5% Overall Tax Burden
  Business Sellers (Legal Entities): 4.0% Income Tax + 8% VAT = 12% Overall Tax Burden
  Sellers without a registered Mexican RFC tax number:
  20% Income Tax + 16% VAT = 36% Overall Tax Burden
  If the transaction involves a non-resident seller or payment to an overseas account, the platform is required to withhold 16% VAT in full, regardless of whether the seller provides an RFC.