VATLive > Blog > VAT > Mexico cuts border VAT rate

Mexico cuts border VAT rate

  • Jan 11, 2019 | Richard Asquith

Mexico cuts border VAT rate

Mexico has reintroduced a reduced VAT rate on its US border.

The current standard rate of 16% has been reduced from 1 January 2019 to 8% for businesses providing services in the Border Region. Businesses must apply for special permission to apply this reduced rate from the tax authorities.

Mexico has previously withdrawn its 11% discounted rate around the border in 2013.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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