Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 16% | 8% | Zero-rated (0%) and exempt |
The local name for VAT in Mexico is Impuesto al Valor Agregado (IVA).
There are basically 2 VAT rates in Mexico:
- Standard VAT rate is 16%
- Reduced VAT rate is 8%
Recent developments
For more information about (recent) rate change developments in Mexico, please click HERE.
Standard rate: 16%
This rate applies for all transactions that take place in Mexico, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Reduced rate: 8%
- Supply of goods and services in the Northern and Southern regions (till end 2024)
Exempt supplies of goods and services, without the right to deduct VAT
- Books, newspapers and magazines
- Constructions used for residential purposes
- Transfer of copyright by authors
- Education
- Public transport of passengers by land
- Transport of goods by sea for nonresidents
- Local and foreign currency and credit instruments (including shares)
Zero rate (0%)
- Exported goods
- Exported services
- Unprocessed food and milk
- Patented medicines
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on November 5, 2021.
