Add or remove VAT (IVA) at Mexico's standard rate of 16%. Pre-set to MXN — switch modes to work forwards from a net price or backwards from a VAT (IVA)-inclusive total.
$800.00 × 1.16 = $928.00
Adding 16% VAT (IVA) to a pair of jeans priced at $800.00 (net) gives $928.00 gross — that's $128.00 of VAT (IVA).
$300.00 ÷ 1.16 = $258.62
Removing 16% VAT (IVA) from a taquería dinner marked $300.00 (gross) leaves $258.62 net — the VAT (IVA) portion is $41.38.
| Rate | Applies to |
|---|---|
| 16% standard | Most goods and services |
| 8% | Northern & southern border zones (reduced regional rate) |
| 0% | Food, medicine, books and some agricultural goods |
Businesses in Mexico generally must register for VAT (IVA) once taxable turnover reaches No threshold — register from the first taxable activity. VAT (IVA) registration and returns are administered by Servicio de Administración Tributaria (SAT).
The standard VAT (IVA) rate in Mexico is 16%. Reduced rates of 8%, 0% apply to items such as northern & southern border zones (reduced regional rate). (Rates as of 2026-07-13.)
Divide the VAT (IVA)-inclusive price by 1.16 (that is, 1 + 16%). Removing 16% VAT (IVA) from a taquería dinner marked $300.00 (gross) leaves $258.62 net — the VAT (IVA) portion is $41.38.
Multiply the net price by 1.16. Adding 16% VAT (IVA) to a pair of jeans priced at $800.00 (net) gives $928.00 gross — that's $128.00 of VAT (IVA).
In Mexico there is effectively no registration threshold — no threshold — register from the first taxable activity. Registration and returns are handled by Servicio de Administración Tributaria (SAT).
Rates and thresholds shown as of 2026-07-13. Tax rules change — confirm current figures with Servicio de Administración Tributaria (SAT) before relying on them.