# Mexico VAT (IVA) Guide for 2026: Rates, Registration & Compliance

Canonical: https://trykintsugi.com/sales-tax-guides/latam/mexico
Published: September 22, 2026

Mexico's VAT (IVA) is 16%, with a reduced 8% border-zone rate. This guide covers RFC registration, the digital-services VAT rules for foreign platforms, and monthly filing with the SAT.

- **SaaS:** Taxable
- **Digital Goods:** Taxable
- **Groceries:** Zero-rated

## Key Takeaways

Mexico's VAT (IVA) standard rate is 16%, with a reduced 8% rate in qualifying northern and southern border zones and a 0% rate for most food, medicines, and exports. Mexico doesn't use US-style economic nexus and has no small-supplier threshold — any business must register in the RFC to charge IVA, and non-resident providers of digital services to Mexican consumers must register with the SAT and charge 16% IVA under the regime in force since June 2020. SaaS and digital services are taxable at 16%.

## Taxability Snapshot

## Sales Tax Rates

Mexico's VAT (IVA) standard rate is 16%, applied to most goods, services, and digital supplies. A reduced 8% rate applies in the northern and southern border regions, and a 0% rate covers most food, medicines, and exports. The tax authority is the SAT.

| Rate | Applies to |
| --- | --- |
| Standard 16% | Most goods, services, digital supplies |
| Border region 8% | Qualifying northern/southern border zones |
| Zero 0% | Most food, medicines, exports |

## Registration or Nexus Threshold

Mexico does not use US-style economic nexus, and there is no small-supplier threshold: any business must register in the RFC to operate and charge IVA [1]. Non-resident providers of digital services to Mexican consumers must register with the SAT and charge 16% IVA, under the regime in force since June 2020 [3]. Registration steps are in the How to Register section.

## Filing Frequency & Deadlines

VAT is reported monthly. The tax must be remitted by the 17th of the following month, and customer information reported to the SAT by the 10th. From April 1, 2026, platforms must give the SAT real-time access to Mexican transaction data.

## Exemptions

Most basic food, medicines, and exports are zero-rated (0%), and some services are exempt. SaaS and digital services supplied to Mexican consumers are taxable at 16%.

## Penalties

Unpaid VAT is adjusted for inflation and accrues late-payment surcharges (recargos) of 2.07% per month for 2026, plus a penalty of roughly 55% to 75% of the omitted amount under Article 76 of the Federal Tax Code (CFF). Platforms face suspension risk for non-compliance with data-access rules.

## Sources

- [1] [Servicio de Administración Tributaria — Ley del IVA, Article 1 (16% standard rate)](https://wwwmat.sat.gob.mx/articulo/19848/articulo-1)

- [2] [Ley del Impuesto al Valor Agregado — Article 2-A (0% on basic food and medicine) and Article 5-D (monthly filing)](http://www.diputados.gob.mx/LeyesBiblio/pdf/LIVA.pdf)

- [3] [Servicio de Administración Tributaria — Digital services by non-residents (registration and 16% IVA)](https://www.gob.mx/sat/prensa/inicio-de-vigencia-de-normatividad-respecto-de-la-retencion-de-impuestos-por-residentes-en-el-extranjero-que-prestan-servicios-digitales-sin-establecimiento-en-mexico-015-2020)

- [4] [Government of Mexico — 8% IVA fiscal stimulus for the northern and southern border regions](https://www.gob.mx/sat/prensa/estimulos-fiscales-para-la-region-fronteriza-norte-y-sur-005-2021)

- [5] [Servicio de Administración Tributaria — Requirements to credit input IVA (acreditamiento)](http://omawww.sat.gob.mx/informacion_fiscal/obligaciones_fiscales/personas_morales/regimen_simplificado/Paginas/requisitos_acreditar_iva.aspx)

- [6] [Servicio de Administración Tributaria — Recurso de revocación (appeals)](https://wwwmat.sat.gob.mx/tramites/72390/presenta-el-recurso-de-revocacion-contra-actos-o-resoluciones-emitidas-por-la-autoridad-fiscal)

Verified July 2026 against Servicio de Administración Tributaria and Ley del IVA guidance.

## Frequently Asked Questions

### What is the Mexico VAT (IVA) rate in 2026?

16% standard, with a reduced 8% in border regions and 0% on most food, medicines, and exports.

### Do foreign digital sellers register for VAT in Mexico?

Yes. Non-resident digital providers register for an RFC with the SAT, appointing a local representative and tax domicile.

### Is SaaS taxable in Mexico?

Yes. SaaS and digital services supplied to Mexican consumers are taxable at 16%.

### What changed for digital platforms in 2026?

From January 1, 2026, platforms withhold VAT on foreign sellers — 100% of the 16% where no RFC is provided — and from April must give the SAT real-time data access.

### When is Mexican VAT due?

VAT is remitted monthly by the 17th, with customer information reported by the 10th of the following month.

### What is the penalty for late Mexican VAT?

Inflation adjustment plus surcharges of about 2.07% per month and a penalty of roughly 55%–75% of the adjusted amount.

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