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.
Mexico has no public registry we can query in real time, so a number cannot be confirmed as active from outside. The Mexican VAT number checker still checks it against the national format, which catches transcription errors before they reach your accounting system.
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 https://www.taxid.dev/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(
'https://www.taxid.dev/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('https://www.taxid.dev/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: