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Mexico Tax - VAT Collection to Start in June

gabyo21
Active Member
Gaby O Member Since: Apr 26, 2016
11 of 14

After researching this issue for quite a bit unfornately this is part of being Mexican under AMLO's government, the first in the world to do this, by the way. And wait for the tax reform that's coming up. Upwork just couldn't find a way around it and so Mexican freelancers got the short end of the stick. If you're Mexican and you're working you're a target for this administration, that's it. Plain and simple. What I still don't get is if you don't provide an RFC why does Upwork retain 20% and what does the company do with that money? I'm just posting here out of curiosity, really. I don't plan on using this platform, at least not until this issue becomes more clear. Too much unfairness, in my Mexican eyes.

 

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
12 of 14

Gaby O wrote:

What I still don't get is if you don't provide an RFC why does Upwork retain 20% and what does the company do with that money?

 


Hi Gaby,


Thanks for your question. We do not keep the funds withheld under this tax law. We are required to forward any tax we collect from our users to the Mexican government.

~ Valeria
Upwork
lucioric
Community Guru
Lucio Ricardo M Member Since: May 16, 2018
13 of 14

Perhaps you as an individual should pay taxes in Mexico but not to the USA. Ask to a tax advisor. For example, I Mexican working from Mexico, I don't pay US VAT to Upwork even if the enterprises that hire me are US-based, but now I am retained IVA.

lucioric
Community Guru
Lucio Ricardo M Member Since: May 16, 2018
14 of 14

No, which pays the mexican taxes are you. Your company will pay you the same, but you will receive a little less. For example, me in the last $100 USD payment for a new client, instead of receiving $80, I received $76. any way each cent deducted my by Upwork is informed to my accontant so that is deducted. You should hire an accountant to help you with the tax-paying issues.