Working as a freelancer on global platforms like Fiverr can be a fantastic way to advance your professional career and earn income. However, many freelancers are not aware of how to meet their tax obligations or how to issue an invoice on Fiverr Mexico.

Today, we'll tell you about the taxes a freelancer in Mexico has to pay, how to declare them, and even the expenses you can deduct. Stay informed and don't get caught off guard by the SAT.

Freelancer on Fiverr Mexico: How to Declare Your Taxes

Do I need to register with the SAT as a freelancer? 

Yes, anyone earning an income as a resident in Mexico must register with the Servicio de Administración Tributaria (SAT). This includes freelancers like you, who receive payments for providing services independently

This is not only a legal obligation but also formalizes your professional activity. It also allows you to issue invoices in compliance with current tax legislation in Mexico, known as Fiverr factura México.

How do I register with the SAT as a Freelancer? 

If you're looking to find work on Indeed or are already registered on an online platform, you must register with the SAT as an independent. Although you can register online, it's recommended to do it in person. Here are the steps:

1. Schedule an appointment to register as a physical person.

2. At your appointment, bring your ID with photo and a proof of address.

3. Request your e.signature and password, which you'll use for online procedures at the SAT. You can apply for this on the same day—just bring your ID, email, and a USB drive.

How do I invoice my Fiverr clients? 

Although Fiverr is a safe platform for the thousands of freelancers offering their services, it does not support invoice issuance directly from its platform.

Don’t worry, if you need a Fiverr invoice in Mexico for your tax records, you can generate an invoice directed to the platform. Just indicate the income earned from your services to declare to the tax authorities your economic activities.

This way, you can produce valid invoices for your clients with your personal Federal Taxpayer Registry (RFC), as long as you comply with the corresponding tax obligations. In this case, you should arrange with the client outside the platform and follow these steps:

1. Obtain your RFC. If you don't have it yet, apply for your RFC at the SAT, either online or in person at one of their offices.

2. Declare your income. Besides registering as a taxpayer, you need to report the earnings made on Fiverr.

3. Generate invoices. Once you have your personal RFC, you can issue a Fiverr invoice Mexico for your clients. Just ensure that the tax details are correct, from the amount to the applicable taxes as required.

Why should I invoice as a Freelancer? 

There are several reasons.

First, it's how you comply with your legal obligations in the country and avoid penalties. Moreover, it lends credibility, helping you attract more clients, whether you use Fiverr to earn money from home or not.

Invoicing as a freelancer also facilitates access to fiscal benefits, such as the deduction of expenses associated with your professional activity.

Finally, it allows for better financial control, helping you manage your income and expenses more effectively.

What taxes do I have to pay as a freelancer? 

Do I have to pay taxes if I am a freelancer?

Yes, indeed.

If you have registered with the SAT under a tax regime, you have the duty to pay taxes.

What taxes does a freelancer in Mexico pay?

The same as other taxpayers:

• Value Added Tax (IVA). This is equivalent to a rate of 16% in the center of the country and 8% in the border states.

• Income Tax (ISR). It is calculated on your net income, that is, your gross earnings minus authorized deductions.

Now, for individuals with a business activity, the ISR rate usually varies between 1.92% and 35%. However, with RESICO, these would be much lower, fluctuating between 1% and 2.5%, depending on your annual income.

How to file monthly and annual declarations with the SAT? 

The monthly declaration must be made before the 17th of each month. We are talking about a procedure that allows you to calculate how much you will pay in total for VAT and ISR. The process is as follows:

1. Go to the SAT portal on declarations and click start.

2. Log in with your RFC, e.signature, and password.

3. Fill out the form with all the requested information.

4. Send the declaration to receive a receipt notice or a capture line. 

In the case of the annual declaration, it is presented before April 30 of the next fiscal year. Here, both your income and your withholdings and deductions for ISR purposes are declared.

The process is similar to the previous one:

1. Access the SAT, go to annual declarations, and start.

2. Indicate your RFC, e.signature, and password.

3. Complete the form with the required data.

4. Sign and send the declaration.

5. Wait for a confirmation notice and the receipt acknowledgment.

If you opted for installments, you will receive the formats with the corresponding capture lines.

What expenses can I deduct as a Freelancer when paying taxes? 

When it comes to Fiverr tax Mexico, you can deduct various expenses related to your professional activity.

These include:

• Equipment and technology. From computers and software to other equipment necessary for your work.

• Materials and supplies. Printers, stationery, and other supplies. 

• A proportional part of rent. Such as services (electricity, water, internet) and maintenance.

• Transportation. In case you need to travel for work-related reasons.

• Training. Courses, workshops, and even educational materials. 

Deducting these expenses reduces your taxable base, which in turn lowers your tax burden. This allows you to optimize your finances, just like DolarApp, which lets you take advantage of the best exchange rates and avoid losses due to exchange rate fluctuations. 

Thus, if you reside in Mexico and are self-employed, you have the obligation to pay your taxes and declare them to the SAT under the Professional Services regime. And if you want a Fiverr invoice in Mexico, just follow the steps presented in this post.