Why does Buddy require a U.S. tax form if my business is in Mexico?
Buddy Booking is a U.S.-based technology and payments platform. Under U.S. law, we are required to collect tax classification information for all businesses we facilitate payments for, including Mexican businesses.
This requirement applies regardless of:
Your nationality
Where your business operates
Where your bank account is located
Whether you already pay taxes in Mexico
This is standard across U.S.-based marketplaces and payment platforms.
Which W-8 form do Mexican businesses need to submit?
The correct form depends on how your business is legally structured, not your citizenship.
Most common cases:
W-8BEN → If you are an individual operating a Mexican business (Persona Física con Actividad Empresarial)
W-8BEN-E → If your business is a registered Mexican company (Persona Moral / legal entity)
If you are unsure which applies, please confirm with your accountant.
I am a Mexican citizen or resident running a Mexican business. What should I submit?
In most cases:
You will submit a W-8BEN (individual) or W-8BEN-E (entity)
You will use your RFC as your Foreign Tax Identifying Number (FTIN)
Your business address in Mexico will be listed
This certifies that your income is earned outside the U.S. and that your business is foreign for U.S. tax purposes.
I am a U.S. citizen living in Mexico and running a Mexican business. What should I submit?
This is common, and citizenship alone does not determine the form.
If your business is legally registered in Mexico, you will typically submit:
W-8BEN (if operating as an individual), or
W-8BEN-E (if operating as a Mexican company)
However, in some cases — such as disregarded entities or certain pass-through structures — a W-9 may still be required.
Because this depends on how your business is classified for U.S. tax purposes:
Buddy cannot determine which form applies
Buddy cannot advise how to complete the form
You should confirm with your U.S. or Mexican accountant
Does submitting a W-8 mean I am paying taxes in the U.S.?
No.
Submitting a W-8:
Does not mean Buddy is taxing you
Does not automatically create U.S. tax liability
Does not replace your Mexican tax obligations
The form allows Buddy to remain compliant as a U.S. platform.
Does Buddy report my income to the U.S. government?
Buddy is required to:
Maintain accurate compliance records
Report certain information if required by law
This is standard for U.S.-based platforms and does not mean Buddy is taxing your business or automatically withholding funds.
What happens if I submit the wrong form?
Responsibility rests with the business submitting the form
Buddy cannot modify or correct submitted tax information
If you are unsure, please consult your accountant before submitting.
Can Buddy waive this requirement?
No.
Tax and compliance documentation is mandatory for all businesses onboarding to Buddy Booking.
Does Buddy issue facturas or handle Mexican taxes?
No.
Buddy:
Does not issue invoices or facturas
Does not act as the seller of record
Does not file or remit Mexican taxes
Each business is responsible for:
Issuing facturas (if applicable)
Declaring and paying Mexican taxes
For detailed information about invoicing and facturas, see our Invoicing & Facturas guide.
U.S. Citizens Operating a Business in Mexico
This section applies to U.S. citizens and U.S. taxpayers who live in Mexico or operate a business in Mexico.
I am a U.S. citizen and U.S. taxpayer, but my business operates in Mexico. What form do I submit?
It depends on how your business is legally structured and classified for U.S. tax purposes.
Citizenship alone does not determine the form.
Scenario 1: U.S. citizen operating a Mexican business as an individual
(Most common in Mexico)
If:
You are a U.S. citizen
Your business is registered in Mexico
You operate as an individual (persona física con actividad empresarial)
There is no separate Mexican legal entity
Then:
👉 You will generally submit a W-9, because the beneficial owner is a U.S. person, even though the business operates in Mexico.
This is true even if:
You pay taxes in Mexico
You issue Mexican facturas
Your income is earned outside the U.S.
Scenario 2: U.S. citizen owning a Mexican legal entity
(Persona Moral / company)
If:
You are a U.S. citizen
Your business is a separately registered Mexican company
Payments are made to the company, not directly to you
Then:
👉 You will typically submit a W-8BEN-E for the Mexican company.
In this case:
The company is the payee
The company is treated as a foreign entity
Your personal U.S. tax status is separate
Why these two cases are treated differently
The IRS looks at who the beneficial owner of the income is:
Individual U.S. person → W-9
Foreign company → W-8BEN-E
Where the work happens or where taxes are paid locally does not override this rule.
Does submitting a W-9 mean Buddy is taxing me in the U.S.?
No.
Submitting a W-9:
Does not change where your income is earned
Does not replace Mexican tax obligations
Does not mean Buddy is taxing you
It simply allows Buddy to meet U.S. reporting requirements.
Does this affect my Mexican taxes or facturas?
No.
Mexican taxes and facturas are handled entirely in Mexico
Buddy does not issue facturas or manage Mexican tax filings
For more information about invoicing and facturas, see our Invoicing & Facturas guide.
What if I'm unsure which scenario applies to me?
Because classification can vary:
Buddy cannot determine which form applies
Buddy cannot advise on how to complete the form
You should confirm with:
A U.S. CPA
A Mexican contador familiar with cross-border businesses
Quick decision guide for U.S. citizens in Mexico
Are you operating as an individual with no separate Mexican company? → Likely need W-9
Do you own a registered Mexican company (Persona Moral)? → Likely need W-8BEN-E for the company
Not sure? → Consult with your U.S. CPA or Mexican contador
Who can help me?
How to complete the form or tax impact? → Your accountant or tax advisor
Buddy cannot provide tax or legal advice.