Latin Tax Engine - Oracle R12 EBTax Mexico VAT Regime to Rate Setup (Oracle Ebiz / E-Business Tax Configuration)

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VAT Name = Impuesto al Valor Agregado, IVA

What supplies are liable to VAT?

The Mexican Value-added Tax Law (LIVA) establishes that VAT is due on the following activities carried out in the Mexican territory:

§  sales

§  rendering of independent services

§  imports of goods or services

§  leasing.

What is the standard rate of VAT?

The standard rate of VAT is 16 percent.

Are there any reduced rates, zero rates, or exemptions?

VAT 11%

Yes. When the acts or activities on which VAT is payable are performed by residents of the frontier region (defined as 20 kilometers parallel to the northern and southern international divisions of Mexico, as well as all the territory of the states of Baja California, Baja California Sur, Quintana Roo, the municipalities of Caborca, Cananea, Sonora, and additionally some parts of the state of Sonora) and material delivery of the assets or rendering of the services takes place therein, the tax shall be computed by applying a rate of 11 percent.

VAT 0 (Zero)%

There is a zero-percent VAT rate for exports and for the alienation of certain goods.

Can I recover VAT if I am not registered?


How are exports of goods and services treated?

Entities residing in Mexico shall compute the tax by applying the rate of 0 percent to the alienation value of assets or services rendered, when they are exported.

What do I have to show on a tax invoice?

Mexican taxpayers must have their invoices printed by authorized printers.