Reduced VAT / GST rate

0^[1]

Standard VAT / GST rate

16

High VAT / GST rate

Not applicable

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Note: The following operations are subject to VAT, when carried on in Mexico: (i) Sales of goods; (ii) Rendering of independent services; (iii) Granting the temporary use or enjoyment of property; (iv) Importation of goods or services

It is possible for VAT taxpayers to undertake temporary importations of goods into Mexico, without having to disburse cash for the payment of import VAT. For such purposes it is necessary for the VAT taxpayers to operate with an "IMMEX authorization" issued by the Ministry of Economy and to secure a "VAT certification" with the Mexican Tax Authority. The
IMMEX authorization refers to an authorization granted pursuant to the Decree for the Promotion of Maquiladora, Manufacturing and Export Services Industry).

[1] A preferential 0% rate is available for certain transactions, such as the sale of food and medicine items, and the exportation of goods and certain services. In addition, there are Presidential Decrees that will remain in force until December 31, 2024 to allow taxpayers residing in the northern as well as the southern border strips to trigger an effective 8% VAT rate on regular transactions, instead of the 16% rate, provided that such taxpayers are duly incorporated into the specific programs created for such effect. For services, they must be rendered entirely within the respective border region, and on the sale of goods, the material delivery must take place in such border regions as well.