Taxes and regulations in eCommerce?
Since 2019, the need arose to create and establish rules for the proper functioning of eCommerce in our country. Today, we will tell you everything you need to know.
What is the Mexican Electronic Commerce Standard?
It is a standard that promotes good practices in eCommerce. It contains the provisions to which all natural and legal persons who market, sell goods, products or services through the use of technology will be subject, to guarantee the rights of consumers.
What does the norm talk about?
- Information, advertising to the user and consumer
- Terms and Conditions
- Communication of the products or services offered (Characteristics)
- Payment and shipping methods
- Transaction and user identification in your purchase
It is worth reviewing its content very well to have a first-class eCommerce.
Taxes for eCommerce
Now, let's get right into the mandatory taxes for any eCommerce in Mexico. Keep in mind that to have an eCommerce you need to be registered with the Treasury (SAT)
What is ISR?
It is the famous income tax (ISR) and it is the tax that you must pay for what you have left of profit and it is calculated based on the money you have earned and the money you have lost is deducted.
What is VAT?
The Value Added Tax (VAT 16%) is the contribution that is applied to the value of the products or services you offer. VAT is usually included in the cost of the product offered in the online store, so it does not imply an extra charge since it is absorbed by the final consumer.
When you charge VAT, the money you receive does not belong to you, since it belongs to the Mexican State. You keep it as a “withholding” until you have to file your taxes.
Paying it contributes to offering services to consumers that ensure data protection, faster shipping or secure payment methods
What other legal aspects should I take into account?
They are mandatory in an online store and if you do not include them, your client could file a complaint with PROFECO for non-compliance. Remember to add: Cancellation policies, guarantee, returns and more.
It is a requirement for any website that stores users' personal data. The (INAI) National Institute of Transparency, Access to Information and Protection of Personal Data, is the responsible body and is empowered to impose sanctions on businesses that do not comply with this requirement.
In short, it is a contract that you have with the client. Customers must accept the T&Cs to browse your online store, make purchases, and more. Establish a code of conduct for your store and how visitors interact with it. In addition, T&Cs generate greater trust in the customer, because trust is one of the biggest impediments to buying online. On the other hand, if you don't have T&C you run the risk of leaving yourself open to legal action.
