Mexico VAT

Mexico introduced a Value Added Tax regime in 1980. Locally, it is known as Impuesto al valor agregado (IVA). It is administered by the Ministry of Public Finance and Credit.

Mexican VAT rates


Mexico has a range of VAT rates, including:

  • Standard VAT rate: 16%
  • Borders Reduced VAT rate of 11% was dropped in 2014
  • Zero Rated Supplies: foodstuffs; water; agricultural supplies; books and magazines
  • VAT Exempt Supplies: immovable property, land, financial services, insurance, cultural exhibitions and events, imports

Mexican VAT rates

Rate Type Which goods or services
16% Standard  
0% Zero Exports; certain basic foodstuffs such as milk, wheat, meat and corn; medicine; some agricultural services.

Should I register for Mexican VAT

Businesses which supply taxable services or goods must register for Mexican VAT. This includes foreign companies with a permanent establishment. Foreign companies without a permanent establishment may not register as a non-resident trader, and cannot reclaim Mexican VAT.

Mexican VAT returns

VAT returns, detailing sales and purchases, must be submitted on a monthly basis. The should be filed by the 17th of the month following the period end, and any tax due paid by this date too. Returns are filed electronically only.

VAT credits may be rolled over into future months, but may also be credited back.

Annual returns are also due. In addition, monthly purchase listings must be submitted (Declaración Informativa de Operaciones con terceros.

Mexican Invoice Requirements

Like a number of countries in South America, Mexican businesses are required to issue invoices on officially produced and endorsed invoices. Although since 2011, electronic invoices may be used for larger businesses, and special digital certificates must be obtained. When issuing invoices, companies must include the following information on any invoice:

  • Name, address and tax ID number of the supplier
  • Date and place of issue
  • Description (including quantises) of products or services
  • Customer details
  • Detailer of customer documentation for imports
  • Pricing and VAT details
  • Central Bank of Mexico exchange rate if in a foreign currency

Credit notes, to revert claimed VAT, must contain all of the same information.

Latest Mexican news

US, Mexico & Canada e-commerce sales tax & duty thresholds

October 12, 2018

As part of the NAFTA renegotiation completed on 1 Oct 2018, the US has secured a rise in the duty-free threshold for e-commerce sales...

Mexico reintroduces border reduced VAT

July 7, 2018

Mexico is planning to reintroduce a reduced VAT rate in the 19 mile border area next to the US border. The rate for standard...

Mexico raises VAT to 16% on readymade snacks and foodstuffs

July 5, 2015

The Mexican government has re-categorised readymade foods from the reduced VAT rate of 0% to the standard rate of 16%. The new rate was...