Last year, the B2C e-commerce turnover in Mexico increased with 26.21% to USD 4.8 billion. The country had an online population of 41.7 million who were 15 years of age and older. Out of the entire population, 16.2 million bought something from the internet in 2015. In this article, our Mexico company formation advisors explain a few aspects related to opening an e-commerce business in Mexico.
E-commerce market trends in Mexico
Apparel and accessories have been leading the categories of online purchases which were reported in Mexico, followed by digital downloads, tickets for events and video games.
PayPal, debit cards and personal credit cards were the most used methods of payment.
Because of a low rate of financial inclusion, though, a lot of retailers provide alternative payment methods, like cash payments at convenience stores.
The top motivations for online consumers are secure payment options, free shipping and a guaranteed return possibility.
In Mexico, there is an increasing trend related to buying through mobile phones.
Our company formation consultants in Mexico can help investors who are interested in setting up an e-commerce company in Mexico.
Taxation for e-commerce businesses in Mexico
Private persons and legal entities which activate in the e-commerce field can be subject to two main types of taxes in Mexico.
Firstly, they are taxed with the Mexican income tax if they qualify with a residency, permanent establishment or source-of-income requirement, according to the local tax legislation. Our Mexico company registration agents can provide further details on what the income tax for e-commerce companies in this country is. We can also help you open a company in Mexico.
Secondly, they can also be taxed with an indirect tax through VAT, which is calculated on where the actual transaction takes place.
Since there are little specific regulations according to the local legislation in connection with e-commerce, and without a specific applicable tax treaty, the general income tax in Mexico and VAT legislation apply to e-commerce businesses, as well.
Setting up a company in Mexico
The most popular type of business vehicle in Mexico is the limited liability company (LLC). To set up such a legal entity, the entrepreneur has to go through a certain incorporation process which consists of several steps, from getting the required authorizations to registering with the appropriate local authorities.
Also, setting up an e-commerce business in Mexico requires having a website for this type of activity.
If you have more questions about e-commerce businesses in Mexico, or for assistance in setting up a company in Mexico, please get in touch with our friendly staff.
Please mind that if you will set up an e-commerce business, you will have tax obligations and accounting obligations just like any other legal entity operating here. For this, you can rely on the services of our CPA in Mexico.
Our accountant can present the obligations you will have as an e-commerce operator and how to submit tax returns in Mexico for the transactions carried out here.