This tax levies on all products in all purchase and sales operations.
See a summary of basic rates:
Basic Rates | |
VAT | 15% - standard rate |
IVF | 10% - operations made in the Border Zone, the Mexican Free-Trade Zone |
IVE | 00% - rate adopted for export and trade of some products (food, medicines, agricultural supplies) |
IVI | 15% - import |
IVS | 15% - provision of services |
IVC | 15% - VAT added to the product price |
Tip: Tax exemption occurs only for natural people that, during the previous year, did not reach a certain amount of invoicing (ex.: $1,000.000.00) |
Withholdings | |
RIV | When services are purchased and the supplier is a natural person:
2/3 of tax value must be withheld by the purchaser.
1/3 of tax value must be paid by the supplier. |
REF | In some cases (scrap sales), VAT is withheld on freight – 4% |