Navigating VAT in Mexico

Q: What happens if I need to cancel an e-invoice?

Cancellation must occur within 72 hours of issuance. If payment has already been made, customer approval is required before cancellation can proceed. Cancellations must be approved by SAT.

Q: Are cross-border transactions included in the e-invoicing mandate?

Yes. Both imports and exports are subject to digital reporting using CFDI invoices.

Q: What is a PAC and why do I need one?

A PAC (Proveedor Autorizado de Certificación) is a government-accredited provider that: Receives and validates e-invoices Applies the digital seal (CSD) Forwards the validated invoice to SAT Returns the UUID (Unique Identifier) and stamped CFDI to the taxpayer

This guide provides an overview of VAT in Mexico, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Mexico.

Last Updated: November 2025

Border regions often enjoy lower VAT rates to boost cross-border trade with the US.

Mexico at a glance.

Standard rate

16% VAT

Digital services VAT

Yes, at 16%

Mandate e-invoicing

Yes

Currency

Mexican Peso (MXN)

Zero-rated items

Applies to specific goods such as food, medicine, and books

VAT format

13 digits

Fiscal representation

Yes, required for non-resident businesses conducting VAT-related activities in Mexico

VAT compliance in Mexico.

VAT compliance
in Mexico.

Doing business in Mexico? You’ll need to play by the Mexican Value Added Tax Law (Ley del IVA).

Who needs to register?

Non-resident businesses must register only if they exceed the threshold; those below the threshold are not eligible to register.

VAT registration in Mexico

VAT filing deadlines in Mexico

Monthly

17th of the following month

VAT payment deadlines in Mexico

Monthly

17th of the following month

Digital services in scope

Things to note

Mexico requires foreign digital service providers to register for VAT if they supply digital services to consumers in Mexico.

e-invoicing in Mexico.

e-invoicing
in Mexico.

Summary of the mandate in this country

B2G mandate in place

Yes

B2B mandate in place

Yes

B2C mandate in place

Yes

Obligation status: B2B e-Invoicing

Historic

B2B e-Invoicing model

Centralised Exchange Clearance Model

Name of exchange infrastructure

SAT, PACs

Format(s) used

CFDI XML, PDF (2D barcode)

FAQs

What happens if I need to cancel an e-invoice?

Cancellation must occur within 72 hours of issuance.

If payment has already been made, customer approval is required before cancellation can proceed.

Cancellations must be approved by SAT.

Are cross-border transactions included in the e-invoicing mandate?

Yes. Both imports and exports are subject to digital reporting using CFDI invoices.

What is a PAC and why do I need one?

A PAC (Proveedor Autorizado de Certificación) is a government-accredited provider that:

Receives and validates e-invoices
Applies the digital seal (CSD)
Forwards the validated invoice to SAT
Returns the UUID (Unique Identifier) and stamped CFDI to the taxpayer

Nearby countries.

Explore indirect tax information in these countries:

Canada

Costa Rica

Colombia

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Navigating VAT in Mexico

Navigating VAT in Mexico

Standard rate

16% VAT

Digital services VAT

Yes, at 16%

Mandate e-invoicing

Yes

Currency

Mexican Peso (MXN)

Zero-rated items

Applies to specific goods such as food, medicine, and books

VAT format

13 digits

Fiscal representation

Yes, required for non-resident businesses conducting VAT-related activities in Mexico

Monthly

17th of the following month

Monthly

17th of the following month

B2G mandate in place

Yes

B2B mandate in place

Yes

B2C mandate in place

Yes

Obligation status: B2B e-Invoicing

Historic

B2B e-Invoicing model

Centralised Exchange Clearance Model

Name of exchange infrastructure

SAT, PACs

Format(s) used

CFDI XML, PDF (2D barcode)

FAQs

Related content.

Making Tax Digital VAT Checklist: What UK Businesses Need to Do Now

VAT Reclaim on Marketing, Advertising and Design Spend: A Guide for Agencies

Why Economic Nexus Thresholds Are Not the Safety Net You Think They Are

Top 6 Countries Requiring Mandatory E-Invoicing in 2026

Exempt vs Zero-Rated VAT: Key Differences Explained

Your Business Overpaid on US Tariffs. Here’s How to Get That Money Back and Keep Getting It Back.

Can You Reclaim VAT on Staff Entertainment? Rules, Limits and Exceptions

E-Invoicing in Greece: Requirements, Deadlines, and Penalties

The Myth of Marketplace Protection: What Sellers Misunderstand

How the VAT IT and Brex Integration Streamlines VAT Reclaim

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