As from 1 June 2020, the Mexican Government requires that all the digital platforms in Mexico, such as Amazon, Mercado Libre, Airbnb, etc, withhold a percentage of their users’ sales as a tax payment.
Digital platforms are requesting all their users provide them their RFC, that is their Mexican taxpayer registry number. For now, only individuals are liable for this retention. Corporations will keep reporting their taxes as before.
It is important to clarify that when receiving income in Mexico for a commercial activity such asrent from a property or the sale of an item, you are obliged to pay taxes for such income. The two main taxes are IVA or VAT (Value Added Tax) and ISR (Income Tax). To be able to pay these taxes, it is necessary to have an RFC number.