A-Cheng, who runs a home goods business, wants to scale up his sales on Mercado Libre Mexico in 2026, but he’s been held up by the RFC tax ID requirement: the platform displays the message “RFC not uploaded; comprehensive withholding of 36%.” He did the math and realized that the more he sells, the more he’ll be withheld.

Mexico’s 2026 RFC tax reform will take full effect: the new tax system will be implemented on January 1, SAT real-time monitoring will begin on April 1, and full-scale verification will be completed by July 20. Without an RFC, a significant portion of your profits will be withheld.

This article provides a comprehensive overview of the RFC types, withholding tax differences, and new revenue-sharing regulations for the Mexico site on Mercado Libre. Sellers planning to expand into the Latin American market are encouraged to read it.

01

2026 Tax Reform Timeline

The Mexican RFC (Registro Federal de Contribuyentes, Federal Taxpayer Registration Number) is a prerequisite for compliance in Latin America. The new tax system will take full effect on January 1, 2026; the SAT (Tax Administration Service) will launch real-time monitoring on April 1; and full-scale verification will be completed by July 20—stores without an RFC or with an RFC discrepancy will face traffic restrictions and withholding of payments.

Data: In Q1 2026, Mercado Libre’s GMV reached $19 billion, with cross-border sales growing by 681 TP3T; the platform’s merchant onboarding boom continues. However, tax compliance has become a prerequisite for entry—it is not optional.

In a nutshell: When it comes to operating on Meituan’s Mexico platform in 2026, RFC isn’t a matter of “whether or not to do it”—it’s a “must-do.” The timeline has already reached the stage of full-scale verification, and sellers operating without compliance are just beginning to face withholding of funds and traffic restrictions.

02

What is the difference in the advance deduction for the three types of RFCs?

No RFC (Offshore/Unregistered): Total withholding tax of approximately 36% (including 16% in VAT and income tax, etc.), equivalent to a deduction of 36 for every 100 pesos sold, which directly reduces profits.

Offshore RFC (Chinese Company Registration for a Mexican Tax ID): Withholding tax of approximately 16%—a significant savings compared to not having an RFC—is suitable for sellers operating internationally under a Chinese entity who do not wish to establish a physical presence in Mexico.

Local RFC + Local Bank Account (Mexican Company + Local Account): Withholding tax of approximately 10.51 TP3T—the lowest rate—but requires a physical presence in Mexico and a local bank account. The difference between the three options lies in net profit; choosing the wrong type is equivalent to paying taxes for nothing.

If you’re facing a similar situation—wanting to set up shop on Meike Duo, unsure about which RFC type to choose, or worried about having 36% withheld in advance or facing issues with revenue sharing on the Brazilian site—feel free to scan the QR code to add Qicaiying’s online customer service (WeChat/Phone: 18620388671). We’ll help you plan your tax ID and qualifications. Feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671), and we’ll help you sort out this entire process from start to finish.

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03

New Revenue-Sharing Rules for the Brazilian Grand Prix

Starting August 1, 2026, the Brazilian marketplace will require split payments, mandating that sellers link their local CPF (for individuals) or CNPJ (for businesses) tax ID numbers. The platform will withhold and remit taxes directly, and sellers will no longer handle the full payment for goods.

Impact: Cross-border sellers without a CPF or CNPJ cannot process payments normally on the Brazil marketplace and must either obtain a local tax ID or use a compliant agent. Brazil is the largest market in Latin America, so losing this market would have a significant impact on GMV.

Strategy: Focus on RFC for the Mexico market and supplement with CPF/CNPJ for the Brazil market. Although the tax systems in the two countries differ, both require the tax ID to be provided upfront. Tackle Mexico first, then expand to Brazil—keep the pace consistent.

04

Trusts Do Not Resolve Tax Issues

Semi-managed and fully managed services address logistics fulfillment but do not address tax issues. Regardless of the type of managed service, RFC registration remains a mandatory requirement, and the platform will continue to withhold taxes as usual. Managed services do not equate to tax exemption.

Another red line: A single entity may operate no more than five stores, and each store must maintain a clean environment; store closures due to association with other accounts are a hidden threat in the Latin American market. While managed services handle logistics for the platform, sellers remain responsible for account compliance, tax compliance, and preventing account association.

Also, using a managed service doesn’t mean you don’t have to select products. No matter how large the platform’s traffic pool is, low-quality SKUs won’t sell. The “FULL” label indicates traffic weighting, not a guarantee; your ability to select and price products determines your success or failure.

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05

How to Choose the Right Tax ID Number

First, consider the entity: Entities without a business license should choose the offshore RFC (16%); entities with a business license and a local account should choose the domestic option (10.5%). Don’t operate without proper registration (36%). Second, consider the pace: Start with RFC for Mexico, then add CPF/CNPJ for Brazil; proceed in stages.

Third, a dual-track approach of managed services and tax compliance: outsource logistics to a platform while handling taxes in-house—maintaining a strong presence in both areas. Fourth, anti-affiliation measures: no more than 5 stores per entity and operational isolation; managed services save on logistics costs but do not compromise compliance.

In a nutshell: The key to success on Mercado Libre Mexico in 2026 is “choosing the right RFC type.” Behind the three numbers—36%, 16%, and 10.5%—lie the different net profit margins for the same batch of goods. The HS code you choose determines whether you earn gross profit or net profit.

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