Tax Authority Crackdown on Online Retailers: What You Need to Know

Starting October 2024, the Tax Administration Service (SAT) in Mexico has launched new audit and review programs. These are designed to ensure compliance with measures aimed at detecting and penalizing smuggling, evasion, and tax avoidance practices. As part of these initiatives, the SAT is taking actions against online retailers such as Shein, Temu, AliExpress, and Privalia.

Tax expert Jesús Rodríguez states that the SAT is enforcing stricter oversight on imports, regulation of courier companies, and the tax obligations of online stores. Companies like Shein, AliExpress, Mercado Libre, Amazon, Privalia, and Temu are required to register with the SAT. Additionally, customers who purchase goods from these companies will be subject to taxes.

These actions are part of the SAT's strategy to increase tax collection, reduce evasion and avoidance, and combat corruption. The goal is to create a more competitive, equal, and fair Mexico by strengthening the integrity of the tax system and promoting fairness in tax collection.

In the realm of foreign trade, additional requirements are being set for companies that carry out temporary imports. Measures are also being put in place to identify and penalize improper practices related to import or export. Online stores are also required to register in the Federal Registry of Taxpayers (RFC) and withhold the corresponding taxes.

In conclusion, the SAT is implementing measures to strengthen oversight and combat abusive practices in fiscal and foreign trade. This will impact companies such as Shein, Temu, AliExpress, and Privalia, among others.