Mexico VAT Rates 2026
Mexico (México) levies Value Added Tax as IVA (Impuesto al Valor Agregado). The standard rate is 16%, applied to most goods and services. Mexico applies a single flat rate with no reduced rates.
Rate update
Mexico's standard IVA (Impuesto al Valor Agregado) is 16%. A reduced border rate of 8% applies in regions bordering the US (Free Economic Zones). SAT administers IVA.
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 16% | Most goods and services |
| Zero-rated | 0% | Basic foodstuffs, medicines, agricultural inputs, books |
Registration and filing
| Registration threshold | No threshold — all businesses making taxable supplies must register with SAT |
| Tax authority | Servicio de Administración Tributaria (SAT) |
| Filing frequency | Monthly definitive payments — Mexico has no annual VAT return |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/MX endpoint to get Mexico data programmatically. Responses are cached for 24 hours.
curl http://localhost:3000/api/v1/rates/MX
# No authentication required for rate lookups
# Response:
# { "country_code": "MX", "tax_type": "vat",
# "standard_rate": 16, "reduced_rates": [0],
# "currency": "MXN", "last_updated": "2026-01-01" }Applying the correct rate in code
For B2B sales to Mexico, validate the customer's RFC first — a verified registration is typically required for correct invoicing and zero-rated exports. For B2C, charge the Mexico VAT rate where registration rules require it.
// 1. Validate the customer's Mexico tax ID
const check = await fetch(
'http://localhost:3000/api/v1/validate/MX/CUSTOMER_TAX_ID',
{ headers: { Authorization: 'Bearer YOUR_API_KEY' } }
).then(r => r.json());
// 2. Fetch current Mexico VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/MX').then(r => r.json());
// → { standard_rate: 16, reduced_rates: [0] }
// 3. Apply the correct treatment for your supply
applyRate(check.valid && isB2BExport ? 0 : rates.standard_rate);About Mexico VAT
Mexico zero-rates food and medicines across the board — far more broadly than most VAT systems — which keeps its effective VAT collection among the OECD's lowest despite the 16% headline rate. An 8% preferential rate applies along the northern and southern border strips to keep prices competitive with US neighbours. Every invoice must be a CFDI digital tax receipt stamped through SAT, making Mexico's e-invoicing mandate one of the oldest and strictest in the world.
VAT in Mexico is administered by the Servicio de Administración Tributaria (SAT). Before applying any zero-rate or exemption to a Mexico business customer, validate their registration first.
Sources: PwC Worldwide Tax Summaries · SAT (accessed Jun 2026)
Rate history
- 2010Standard rate raised from 15% to 16%
- 2019Northern border region rate halved to 8% by decree
Frequently asked questions
What is the VAT rate in Mexico in 2026?
16% standard, 8% in the northern and southern border regions, and 0% on food, medicines and books.
Does Mexico have a VAT registration threshold?
No — any business making taxable supplies must register with SAT and issue CFDI electronic invoices from the first sale.
Related concepts and guides: