TAX ID

In Mexico, a Tax ID is referred to as the Registro Federal de Contribuyentes (RFC). The RFC is a unique alphanumeric identifier assigned by the Tax Administration Service (Servicio de Administración Tributaria, SAT) to individuals and businesses for tax purposes.

Here’s what you need to know about the RFC:

For Individuals (Personas Físicas):

• Purpose: The RFC is used for tax filings, opening bank accounts, and other financial activities.
• Format: The RFC for individuals typically consists of 13 characters, which include the first letter and first vowel of the person’s last name, the first letter of their second last name, the first letter of their first name, followed by their birth date (YYMMDD), a three-character homoclave assigned by the SAT, and a verification digit.
• Requirements: To obtain an RFC, individuals need a CURP (Clave Única de Registro de Población), an official ID (such as a passport or voter ID), and proof of address.

For Businesses (Personas Morales):

• Purpose: Businesses use the RFC for tax filings, invoicing, opening bank accounts, and other commercial activities.
• Format: The RFC for businesses consists of 12 characters, which include the first three letters of the company’s name, the date of registration (YYMMDD), and a three-character homoclave assigned by the SAT, and a verification digit.
• Requirements: To obtain an RFC, businesses need to provide their legal name, date of incorporation, proof of address, and other relevant documentation depending on the type of business.

How to Obtain an RFC:

1. Online Registration: Individuals and businesses can register for an RFC on the SAT’s official website. The process involves filling out an application form and submitting required documents electronically.
2. In-Person Registration: Applicants can also visit a local SAT office to register in person. It is advisable to schedule an appointment in advance.

Importance of the RFC:

• Tax Compliance: It is mandatory for tax filings and compliance with Mexican tax laws.
• Financial Transactions: Essential for opening bank accounts, securing loans, and conducting various financial transactions.
• Invoicing: Required for issuing electronic invoices (facturas) in Mexico.

Additional Notes:

• Updates: Any changes in personal or business information must be updated with the SAT to ensure the RFC remains accurate.
• Penalties: Failure to register for an RFC or to update information can result in penalties and fines.

As of 2022 it became mandatory to have a Mexican tax ID (RFC) for every Mexican citizen or resident over 18 years old that wishes to open a bank account, sell property or buy/sell a vehicle.

We assist setting up the appointments through the website www.citas.sat.gob.mx and accompany the client on the appointment date until he obtains the RFC and electronic signature (FIEL). Contact us for more information!