VAT Calculator calculates the VAT amount as well as the price with and without VAT. The VAT % is pre-filled, but you can change it or clear the value. The results are rounded to your desired precision. You can also make a currency conversion.
You can also choose the VAT% by clicking the percentages in the tables below.
Mexico | |
| standard | 16% The general rate on sales of goods, independent services, rentals and imports, unless zero-rating, an exemption or a tax incentive applies. It generally covers meals prepared for consumption, including takeaway and delivery, beverages other than milk, chewing gum and processed pet food. Taxable digital services are also subject to VAT. |
| border tax incentive | 8% The effective rate for transactions qualifying for the northern or southern border tax incentives. A 50% tax credit is applied to the 16% rate. A tax domicile, branch or establishment in a designated municipality, the relevant SAT notification and compliance with the transaction’s territorial conditions are required. Imports, sales of real estate and sales or rentals of intangibles are excluded; other exclusions also apply. Both decrees have been extended through 31 December 2026. |
VAT is generally determined on amounts actually collected and paid. Input credits require compliance with the statutory conditions, and mixed activities may require apportionment. Zero-rating and exemption have different consequences. The border 8% benefit does not apply automatically because a person lives or shops near the border: check designated municipalities, notification requirements and exclusions. Digital content in the north and digital services in the south have specific exclusions; transport must start and end within the region without stops outside it. This table summarises VAT and does not cover every incentive, special regime, local tax or IEPS excise tax.
| Past changes: | |
| 1 Jan 2026 | The 2026 Federal Revenue Law also applies the 0% rate to reusable and disposable period underwear and menstrual discs. Mexican federal legislation |
| 1 Jan 2026 | The northern and southern border tax incentives continue during 2026. The extension published on 31 December 2025 preserves the relief producing the effective 8% rate through 31 December 2026. Mexican federal legislation |
| 1 Jan 2022 | Sanitary pads, tampons and menstrual cups move from 16% to the 0% rate. Mexican federal legislation |
| 1 Jan 2021 | The VAT incentive begins in the designated southern border municipalities. Qualifying transactions can use an effective 8% rate through the tax credit. Mexican federal legislation |
| 1 Jan 2019 | The northern border VAT incentive begins: a 50% tax credit produces an effective 8% rate instead of 16% for qualifying transactions. Mexican federal legislation |
The tax information on this page is general information, not tax advice, and does not cover every exception. Check the treatment of your transaction in the rules and guidance of Mexico’s Tax Administration Service (SAT). Information last checked 6 Oct 2026.
Articles:
VAT rounding: the EU, the UK and other European countries
The EU VAT Directive and the Court of Justice of the European Union leave VAT rounding rules to be decided at national level. National rules vary. In the UK, HMRC allows VAT on B2B invoices to be rounded down to the nearest whole penny.
Roundings in VAT calculation: Mathematically impossible prices?
There are a whole range of VAT-inclusive prices that cannot be mathematically arrived at if the tax is calculated from the VAT-free price. One example is 3.99. These prices are also possible, but then the VAT-free price must be interpreted as rounded.
VAT Gap - How much VAT is left uncollected in EU countries?
9.5% of VAT was left uncollected in EU countries. See the list of EU countries and candidate countries.
In Europe there is VAT - in the US sales tax
In Europe, companies belonging to the production chain account for the VAT paid by the consumer to the state in proportion to their value added. The US sales tax, on the other hand, is billed entirely by the company that made the consumer sale. Sales tax is paid to local operators, not to the state.
Many of today's taxes were already in use in Antiquity. Deciding on taxation has moved from autocrats to parliaments and the level of taxation has risen. In earlier times taxes were used to wage wars, today taxes are used to maintain welfare states.