Mexico VAT Calculator

Mexico · Taxes

Calculate the VAT on a purchase or invoice in Mexico: add VAT to a price excluding tax, or break out the VAT from a price that already includes it.

16% is the general rate. 8% only applies if you qualify for the border-region incentive.

How is it calculated?

To add VAT to a base amount: total = base × (1 + rate/100). To extract VAT from a price that already includes it: base = total ÷ (1 + rate/100). In Mexico the general rate is 16%. There's a reduced 8% rate in the northern border region, but it only applies to those who meet the requirements of the corresponding tax incentive — not to anyone who simply lives near the border.

Examples

  • Add 16% VAT to 1,000 (taxable base)

    The total with VAT is 1,160.00 (160.00 in VAT).

  • Extract 16% VAT from 2,000 (final price)

    The taxable base is 1,724.14 (275.86 in VAT).

How to add or remove VAT

Mexico's general VAT rate is 16%. To add it, multiply the base by 1.16; to remove it from a final price, divide by 1.16.

VAT rates and treatments

RateWhen it applies
16%General rate
8%Border region, only for those meeting the tax incentive's requirements
0% and exemptCertain goods and services under the law; this calculator doesn't identify them

Sources

Frequently asked questions

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