Introduction
Envato is registered for VAT in Mexico and will begin charging VAT to buyers residing in Mexico from May 2025. This affects all Envato Market authors based in Mexico, as VAT will be applied to Author Fees. Below, we explain how this change will affect you and what to expect.
What is Changing?
As part of our tax compliance obligations, Envato will collect VAT on Author Fees for authors based in Mexico. This means that a VAT charge will be applied to the Author Fees you pay to Envato. When VAT is charged, the VAT rate will align with Mexican tax regulations, and you will see VAT charges reflected in your statement and invoices.
Important Note for Business Customers
Envato is required to collect Mexican VAT on Author Fees for all authors based in Mexico, whether individuals or business.
Providing a valid RFC (Registro Federal de Contribuyentes) number will not exempt you from VAT charges.
If you are a business customer with a valid RFC, you may be able to recover the VAT charged by Envato by claiming it as input tax on your Mexican VAT return. Please consult your tax advisor for specific guidance.
Make sure your RFC/VAT number is updated in your Envato account settings to ensure that your invoices correctly reflect your business details.
VAT will be charged on your Author Fees even if you provide a valid RFC/VAT number. If you are a business customer, you may be eligible to claim a VAT credit on the VAT paid, depending on your individual tax circumstances. Please consult your tax advisor for specific advice.
What Do You Need to Do?
- Ensure your tax details, including your RFC/VAT number, are correct and up to date in your Envato account settings, so it appears on your invoice. Log into your Market account and select 'Settings' from the menu under your username. If you choose Mexico as a country, a new field will appear where you can enter your VAT number in the "Tax ID" field.
- Review your Envato Market statements to see how VAT is applied.
FAQ's
Why is Envato collecting VAT on Author Fees?
Envato is required by Mexican tax laws to remit VAT on Author Fees for authors based in Mexico.
How much VAT will I have to pay?
The VAT rate will be based on current Mexican tax regulations. You will see the applicable percentage applied to your Author Fees in your Envato Market statements..
Will this affect my earnings?
Yes, VAT on Author Fees will be an additional charge, which may slightly reduce your overall earnings.
Where can I see the VAT charges?
VAT charges will be visible in your Envato Market statement and invoices.
If I add my RFC/VAT number, will VAT still be charged?
Yes, VAT will still be charged. Providing your RFC/VAT number ensures your invoices are correctly issued, and you may be able to recover the VAT through your Mexican VAT return, depending on your eligibility. Please consult your tax advisor.
What if I have more questions?
For any tax-related concerns, please reach out to your tax advisor. For account-related queries, contact Envato Support.