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VAT rates in Mexico

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.

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