How is VAT calculated?
Add VAT: total = amount x (1 + rate). Remove VAT: base = total / (1 + rate); VAT = total - base.
VAT rates in Mexico
The general rate is 16%. In the northern and southern border zones 8% applies under certain conditions. Some goods, such as food and medicine, have a 0% rate.
Frequently asked questions
What is the VAT rate in Mexico?
16% in general.
How do I remove VAT from a price?
Divide the total by 1.16.
What is the border zone?
An area with a reduced 8% rate under tax requirements.
Which products have 0% VAT?
For example, unprocessed food and patent medicine.
Can I use this for invoices?
It is a guide. Always confirm with your accountant.