Growing e-commerce and new tax rules in Mexico

E-commerce in Mexico is a rapidly growing sector, driven by an increasingly digital population and a constantly expanding market. For foreign companies interested in selling goods or services in the North American country, opportunities abound, but so does the complexity of the regulatory framework. In recent years, successive Mexican governments have adopted a clear approach: combating tax avoidance in the e-commerce sector by foreign companies not fiscally identified in Mexico, strengthening the system and protecting fair competition.

This choice reflects Mexico’s commitment to aligning with international standards in the fight against abusive practices in digital commerce, promoting a fair and transparent tax system with clear rules for those intending to do business legally.

Foreign companies without a permanent establishment in Mexico: what the law provides

According to Mexican tax regulations (in particular, the VAT Law and the Income Tax Law), even foreign companies without a permanent establishment in Mexico that sell goods or services online to customers located in Mexico are subject to various tax obligations. These obligations may vary depending on the operational structure adopted by each foreign company. Therefore, a case-by-case analysis is required to identify them precisely. However, when the adopted operational structure falls within those affected by the recent tax reforms, the foreign company is required to comply with several obligations, including:

• Registration with the Federal Taxpayers Registry (RFC);
• Appointment of a tax representative residing in Mexico;
• Establishment of a tax domicile in Mexico;
• VAT withholding and, where required, Income Tax (ISR) withholding;
• Submission of monthly and informative tax returns.

In practice, in these cases, foreign companies are treated similarly to local companies, with comparable (and sometimes greater) burdens in terms of compliance, penalties, and inspections.

E-commerce and new rules from 2025

Furthermore, starting from January 1, 2025, new provisions set forth in the so-called Reglas Generales de Comercio Exterior have entered into force, introducing significant implications, including tax-related ones, for the sale of products in Mexico through e-commerce channels. According to these provisions, duties of up to 19% may be applied to goods originating from countries that do not have free trade agreements with Mexico and that are imported into the country via courier services.

These measures aim to create a more consistent and balanced customs treatment for imported goods, even when their value falls below the thresholds normally required for the application of duties. In the past, many products escaped taxation simply due to the low declared value.

This change is part of a broader process of modernization of the Mexican fiscal and commercial system, in line with international trends aiming to transparently and sustainably regulate digital economy flows.

It is, therefore, a regulatory evolution that, far from being an obstacle, represents an opportunity to strategically review one’s operational structure and optimize market entry into Mexico in compliance with the new rules.

Support from a law firm with international expertise

Thanks to our cross-border experience, we are able to assist foreign companies in analyzing and planning e-commerce activities in Mexico.

If you want to start an e-commerce project in Mexico or modify its operational structure in light of the recent tax reforms, contact us for a personalized analysis.