VAT Calculator Mexico

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.
zero rate with input VAT credit	Food for humans and animals and qualifying pharmaceutical medicines, subject to statutory exclusions; specified unprocessed animals and plants, agricultural inputs, machinery and services; domestic water supply. Includes ice and non-carbonated, unflavoured water, except water in containers smaller than 10 litres. Books, newspapers and magazines sold by their own publisher; sanitary pads, tampons and menstrual cups and, during 2026, reusable or disposable period underwear and menstrual discs. Goods exports and services meeting Article 29 also qualify for 0%. Input VAT remains creditable subject to the statutory requirements. Having a foreign customer does not by itself make a service zero-rated.
exempt without deduction	Exemptions include sales of land and residential buildings; unfurnished residential rentals subject to statutory conditions; resales of books, newspapers and magazines; sales of used movable goods except those made by businesses. Also public education and authorised or officially recognised private education, specified medical and hospital services, public land passenger transport wholly within urban, suburban or metropolitan areas, and certain financial and insurance transactions. Not all private healthcare or passenger transport is exempt. Input VAT attributable solely to exempt activities is generally not creditable.
out of scope	Paid employment and services treated as employment remuneration for income tax purposes are not independent services. Transactions outside the territorial or material scope of VAT are determined under the law, particularly Article 4-A. This is distinct from zero-rating and does not automatically confer an input VAT credit. Services supplied from abroad and used in Mexico may be taxable as imports.
withholding and imported-services VAT	Legal entities withhold VAT in the cases specified by Article 1-A, including payments to individuals for independent personal services, commissions or rentals, purchases of waste materials and road freight services. Withholding also applies to specified purchases or rentals of tangible goods from non-residents without a permanent establishment. Withholding may be full or partial depending on the transaction. Separately, recipients account for VAT on taxable imported services. These obligations are not reduced rates.
used cars and trucks: special taxable base	For resales of used cars and trucks bought from individuals who do not separately charge VAT, Article 27 of the Regulations allows the acquisition cost to be subtracted from the taxable value determined under Article 12 of the Act. Payment and purchase documentation requirements must be met. Repair and improvement costs cannot be added to the acquisition cost being subtracted; their VAT may be credited subject to the usual conditions. This is a vehicle-specific rule, not a general scheme for all used goods.
digital services and platforms	Foreign suppliers of digital services covered by the law must collect and pay VAT unless an intermediary withholding rule applies. If the supplier is not on the SAT list, the recipient must check the import VAT obligation. Platforms collecting payment on behalf of sellers generally withhold 50% of the VAT from individuals; during 2026 this also extends to legal entities. Full withholding applies in the statutory cases, including failure to provide an RFC tax identifier and, during 2026, domestic goods sales by non-residents without an establishment in Mexico or proceeds deposited in foreign accounts. These are shares of the VAT collected, not tax rates of 50% or 100% on the price.

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	Platforms collecting payment for third parties must also withhold VAT from legal entities. Full withholding is introduced in specified cases, including domestic goods sales by non-residents without an establishment in Mexico and proceeds deposited in foreign accounts. These are withholding changes; the general rate remains 16%. Mexican federal legislation
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). The information was checked on 20 Sep 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.

History of taxation

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.


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