- VAT in Mexico is called “Impuesto al Valor Agregado” (IVA)
- The standard VAT rate in Mexico in 2023 is 16%
- The reduced VAT rate in Mexico is 8% and applies in special regions
- There is no registration threshold for VAT in Mexico
- Resident businesses can reclaim input tax by deducting it from output tax
- Non-resident businesses cannot reclaim input tax
- A local company or permanent establishment is required to become a taxpayer in Mexico
- Records must be kept for at least five years
- VAT returns must be filed and paid monthly within 17 days of the reporting period
- Penalties are applicable for late filing and payment, and there may be imprisonment punishment for fraud and non-payment of taxes.
Source: vatcompliance.co
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
