1Bajalover
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Registered: 1-30-2011
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Resale License in Baja - where to get?
I make greeting cards when in Baja and sell them to some of the local stores but last time they needed me to have a resale number in order to get
credit for their purchase - I am told that the bank may have this form but am not at all sure where to start so wonder if anyone has experience or
information about applying for one
Thank you!
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DENNIS
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Location: Punta Banda
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It's a Hacienda [Mexico's IRS] formality to issue facturas with sales. You'll have to have a legitimate business to get involved with this.
I'll tell you right up front, you won't want to go through that to sell greeting cards, unless your name is Hallmark.
Your customers probably know this so I don't know why they're messing with you. If they can't slide a few cards under the table, don't mess with
them. They could be your downfall in the future.
What are the circumstances of your card sales? Where etc?
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Dave
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Spot on
| Quote: | Originally posted by DENNIS
Your customers probably know this so I don't know why they're messing with you. |
Everyone loves to accept facturas...no one wants to give them. 
Your customers either don't want your business or expect an audit.
I'd assume the former. 
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MitchMan
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Most Mexican independent contractors who are registered and have the abiity to provide facturas avoid it as much as possible because it is a small
time consuming pain in the arse and more significantly because they will have to reflect that sale and report it in their annual income tax return and
pay IETU/IVA taxes on that sale. So, if they issue a factura, they have to charge you the IETU/IVA tax and therefore risk losing the sale or they eat
the tax themselves. Obviously, what most independent contractors do is avoid issuing facturas. The small business people I know only rarely issue
facturas for most all the business that they do.
It is like the under-the-table stuff that goes on in the USA. It's rampant.
[Edited on 3-30-2011 by MitchMan]
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1Bajalover
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I have had two store buyers ask me if I could get a resale number - one has bought from me on the U S side of the border in order to declare the
purchase on her own expense records - the other has a busy shop and asks people to have that resale number - it has mostly not been a problem down
there but those two brought it up (and they both do like my work a lot and buy a lot from me) - but you all have a point - I sell here to a lot of
stores that do not require it and I do declare the sales on my side so I guess it may not be all that important - thanks for all the info - great
information sharing forum!
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fishabductor
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| Quote: | Originally posted by DENNIS
It's a Hacienda [Mexico's IRS] formality to issue facturas with sales. You'll have to have a legitimate business to get involved with this.
I'll tell you right up front, you won't want to go through that to sell greeting cards, unless your name is Hallmark.
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This is spot on.
You don't want to do this unless you sell a LOT of cards and make decent money doing so. In addition to having a coorporation($2K), you'll also have
to hire an accountant to file your taxes monthly($100+/mo), get an rfc number, a working fm3/fm2($300-700/yr or twice a yr. depending on if you do it
yourself, and what duration visa immigration gives you), have facturas printed up($50) and issue them, charge/pay IVA(11%) and then to minimize your
taxes, you'll have to start getting facturas on everything possible(read very time consuming).
Since you will need to get facturas on everything, you'll also be charged 11% IVA(sales tax) on all factura'd items purchased, no more under the table
sales. If you don't get enough facturas then you'll have to pay income tax. For me it is roughly 25%
If you don't do the above, and you get turned into immigration, you risk being fined and/or deported.
Basically it is a giant PITA, and not worth it unless you make enough to offset the cost of doing business in Mexico.
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irenemm
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Location: vicente guerrero, baja
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You can only give Facturas if the Government will let you. Some businesses do not have facutras because the government will not let them have them.
You have to have enough in sales for them to let you get them. A factura can only be printed by Government approved shops. Your facutra expire too.
If you have one missing you can get a large fine too. Keep selling from the US you are better off.
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