Headline: Mexico Implements 19% Tax on Imported Products from Non-Treaty Countries, Targeting Chinese Retailers like Shein and Temu
Article:
President Claudia Sheinbaum has justified the recent decision by Mexico’s Servicio de Administración Tributaria (SAT) to impose a 19% tax on all products imported from countries without trade agreements, primarily affecting Chinese retailers operating in Mexico. This move aims to close loopholes that allowed countries without commercial agreements to avoid certain duties on imported goods.
Sheinbaum argued that Chinese retail platforms like Shein and Temu, which have gained significant market share in Mexico, have been exploiting these loopholes to import large volumes of goods for sale, bypassing required taxes. "It’s not the same as an individual ordering a single item, as opposed to importing goods for commercial sale," she clarified.
In response to the new tax, the SAT has specified that digital platforms must now adhere to several fiscal requirements. These include registering with the Registro Federal de Contribuyentes (RFC), paying the Impuesto al Valor Agregado (IVA) on imported products, obtaining an electronic signature (e.firma), providing a fiscal residence in Mexico, and designating a legal representative.
The new regulations, published in the chapter 12 of the Miscelánea Fiscal in the Diario Oficial de la Federación, will also impact companies offering transportation, accommodation, and temporary goods usage services through digital platforms, such as Uber and Airbnb. These services will now be required to register with the RFC, pay the IVA and Impuesto Sobre la Renta (ISR), and issue receipts upon user request.
Although retailers like Shein and Temu have not yet commented on the implementation of the new tax, industry insiders suggest that the increased costs may be passed on to consumers, potentially driving up prices in the Mexican market.
