Mexico VAT Calculator
How Much Is VAT in Mexico?
The standard VAT rate in Mexico is 16% in 2026. Other rates: 8% — Registered businesses in designated northern and southern border municipalities, under a stimulus decree extended to 31 December 2026; 0% — Most unprocessed and basic foods, patent medicines, feminine hygiene products, agricultural inputs, exports. Locally the tax is called Impuesto al Valor Agregado (IVA). Standard VAT/GST rates worldwide range from around 5% to 27%.
How to calculate Mexico VAT
To add 16% VAT to a net (tax-exclusive) price, multiply it by 1.16. To remove VAT from a gross (tax-inclusive) price, divide it by 1.16.
- Add VAT: MXN 100 net × 1.16 = MXN 116 gross (that is MXN 16 of VAT)
- Remove VAT: MXN 116 gross ÷ 1.16 = MXN 100 net (that is MXN 16 of VAT)
Use the Mexico VAT calculator above for any amount, or compare Mexico with every other country in our VAT rates by country table.
Mexico VAT Rates Overview
Every VAT rate currently in force in Mexico
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Standard rate | 16% | Most goods and services, imports and digital services from foreign providers |
| Border region rate | 8% | Registered businesses in designated northern and southern border municipalities, under a stimulus decree extended to 31 December 2026 |
| Zero rate | 0% | Most unprocessed and basic foods, patent medicines, feminine hygiene products, agricultural inputs, exports |
VAT History and Local Rules in Mexico
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2026: Platform VAT withholding extended to B2B sales; border 8% stimulus renewed to 31 December 2026
- 2020: IVA on digital services by foreign providers took effect 1 June 2020
- 2019: 8% IVA stimulus introduced for the northern border region (southern border added 2021)
- 2014: Former 11% border rate abolished; 16% applied nationwide
- 2010: Standard rate raised from 15% to 16%
- 1980: IVA introduced at 10%, replacing the federal sales tax
Is the VAT rate the same everywhere in Mexico?
Mostly yes: 16% applies nationwide, but registered businesses in designated northern and southern border municipalities may apply a reduced 8% rate under a stimulus decree running to 31 December 2026.
Good to know
The 8% border rate is not automatic: businesses must be established in eligible municipalities of the northern or southern border region and registered in the SAT border stimulus registry. It does not apply to sales of real estate, intangibles or digital services.
The border incentive is granted by annual presidential decree; the current decree runs to 31 December 2026, and its continuation beyond 2026 depends on a further renewal.
Prices quoted to consumers in Mexico must include IVA, and every sale requires a CFDI electronic invoice if the customer requests one.
Zero-Rated and Exempt Supplies in Mexico
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Most basic foodstuffs (excluding beverages other than milk)
- Patent medicines
- Feminine hygiene products (since 2022)
- Agricultural machinery, fertilisers and related services
- Exports of goods and qualifying services
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Sale and rental of residential housing
- Sale of land
- Education services with official recognition
- Medical services by licensed professionals
- Public ground transport of passengers (excluding rail)
- Certain interest and financial services
Mexico VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in Mexico.
| Local name | Impuesto al Valor Agregado (IVA) |
|---|---|
| VAT number format | RFC: 12 characters for companies, 13 for individuals (e.g. ABC123456XY1) |
| Registration threshold | No threshold: businesses carrying out taxable activities must register in the Federal Taxpayers Registry (RFC) |
| Non-resident businesses | Foreign providers of digital services to Mexican consumers must register with the SAT from the first sale; other non-residents are generally covered by withholding or importer rules |
| Filing frequency | Monthly returns, plus annual reconciliation return |
| Filing and payment deadline | 17th day of the month following the tax period |
| E-invoicing / reporting | Mandatory electronic invoicing (CFDI 4.0) validated through SAT-authorised certification providers for all transactions |
| Tax authority | Servicio de Administracion Tributaria (SAT) |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with Servicio de Administracion Tributaria (SAT) before relying on them.
Cross-Border Sales and Refunds in Mexico
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Foreign providers of digital services to consumers in Mexico must register with the SAT, charge 16% IVA, issue receipts and file monthly; there is no threshold. Digital intermediation platforms withhold IVA from sellers, and from 2026 withholding extends to B2B sales, with 100% withholding for foreign sellers.
Tourist VAT refunds: Yes: foreign tourists can reclaim IVA on goods bought at participating stores, with a minimum purchase of MXN 1,200 per store paid electronically, claimed on departure by air or sea.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Frequently Asked Questions
Common questions about VAT in Mexico
What is the current VAT rate in Mexico?
The standard VAT rate in Mexico is 16% in 2026. Other rates in force: 8% (border region rate), 0% (zero rate). See the rates table above for exactly what each rate covers.
How do I calculate VAT in Mexico?
To add 16% VAT, multiply the net price by 1.16. To remove it from a VAT-inclusive price, divide by 1.16; the difference is the VAT. The calculator at the top of this page does both.
What is the IVA rate in Mexican border cities?
Registered businesses in eligible northern and southern border municipalities can charge 8% IVA instead of 16% under a stimulus decree valid through 31 December 2026. Real estate, intangibles and digital services are excluded.
Is food taxed with IVA in Mexico?
Most basic foodstuffs are zero-rated (0%), but restaurant meals, prepared food sold for consumption on premises and most beverages other than milk are taxed at 16%.
Can tourists get an IVA refund in Mexico?
Yes. Foreign tourists can reclaim IVA on goods bought at participating stores if they spend at least MXN 1,200 per store with a card or electronic payment and claim the refund when departing by air or sea.
Who needs to register for VAT in Mexico?
Registration threshold: No threshold: businesses carrying out taxable activities must register in the Federal Taxpayers Registry (RFC). Foreign businesses: Foreign providers of digital services to Mexican consumers must register with the SAT from the first sale; other non-residents are generally covered by withholding or importer rules.
Sources
Official and professional references used for this page
Last reviewed on 27 September 2026.