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Mexico VAT changes

  • Nov 16, 2013 | Richard Asquith

Mexico VAT changes

The Mexican budget for 2014 has been approved.  This confirmed that the planned inclusion of foodstuffs in the VAT net would not go ahead.

Mexican VAT reform held back.

The new government had been keen to extend the Mexican VAT net to raise revenues and balance federal receipts.  Mexico is heavily dependent upon oil receipts.  However, opposition to adding foodstuffs to VAT was successful.

The only major VAT changes that did survive, and come into effect on 1 January 2014 are:

  • The scrapping of the 11% reduced VAT rates for the 10 mile US border zone.  The region will now be subject to the standard 16% Mexican VAT rate
  • Pet food will now be subject to VAT at 16%.

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.