Mexico VAT Calculator
Add or remove VAT in seconds. The standard rate in Mexico is 16%, and you can switch to 8% with one click.
Price including VAT
$116.00
- Net amount
- $100.00
- VAT at 16%
- $16.00
- Gross amount
- $116.00
Mexico VAT rates
| Rate | What it applies to |
|---|---|
| 16% | Standard rate: most goods and services |
| 8% | Reduced. Sales in the northern and southern border regions by businesses enrolled in the incentive (extended to 31 December 2026) |
Zero rate: basic food, medicines, books and newspapers, farm goods and machinery, exports. Exempt: land, homes and residential rent, medical services, education, interest.
How to calculate VAT in Mexico
- To add VAT: price before tax × 1.16 = price including tax. For example, 100.00 × 1.16 = 116.00.
- To remove VAT: price including tax ÷ 1.16 = price before tax. For example, 116.00 ÷ 1.16 = 100.00.
- The tax inside a price that includes it: price including tax × 16 ÷ 116. For 116.00 that is 16.00.
Registering for VAT and invoicing
- When to register
- No threshold: all businesses registered with the SAT charge IVA.
- On your invoices
- Invoices must be issued as electronic CFDI documents through the SAT system.
- Local name
- Impuesto al Valor Agregado (IVA)
Recent changes and things to know
The 8% border rate is renewed by decree, most recently only through 31 December 2026.
Mexico VAT: frequently asked questions
What is the VAT rate in Mexico?
The standard VAT rate in Mexico is 16%. Other rates: 8% (sales in the northern and southern border regions by businesses enrolled in the incentive (extended to 31 December 2026)).
How do I add VAT to a price?
Multiply the price before tax by 1.16. For example, 100 plus 16% VAT is 116.00.
How do I remove VAT from a price?
Divide the price including VAT by 1.16. For example, 116.00 including 16% VAT is 100.00 before tax. Do not just take 16% off the total, because that gives the wrong answer.
When do I have to register for VAT in Mexico?
No threshold: all businesses registered with the SAT charge IVA.
What must a VAT invoice show in Mexico?
Invoices must be issued as electronic CFDI documents through the SAT system. You can make one with the free invoice generator.
Is this VAT calculator free?
Yes. It is free, needs no sign-up and runs in your browser, so nothing you type is sent to BunnyDoc.
Sources
Rates checked in October 2026. Tax rates and rules change, and what you charge depends on what you sell and to whom, so check the official sources above or ask an accountant. This page is general information, not tax advice.
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