Mexican VAT (IVA)
Mexican VAT — IVA (Impuesto al Valor Agregado) — is Mexico's value-added tax, levied on most supplies of goods and services and on imports, at a standard rate of 16% (with a reduced rate in the northern and southern border zones). On imported goods, IVA is generally payable at the border (via the pedimento) on the customs value plus duty, though registered businesses recover it as input VAT.
A key feature for trade is that temporary imports under IMMEX can obtain VAT relief/deferral (via certification), so maquiladora manufacturers don't tie up cash in IVA on inputs that will be re-exported. For companies importing into, selling in or manufacturing in Mexico, correctly determining IVA on imports and transactions, applying border-zone rates, and managing IMMEX VAT certification is a core tax-compliance requirement handled through customs and ERP systems. Understanding Mexican IVA (and its IMMEX interaction) is essential to pricing and compliance in the Mexican market. It is central to how consumption is taxed in Mexico and to the economics of Mexican manufacturing.
IVA is Mexico's VAT — 16% (lower in border zones), collected at the border on imports via the pedimento. Crucially, IMMEX manufacturers can get VAT relief on temporary imports through certification, avoiding tying up cash in IVA on re-exported inputs. Getting IVA, border rates and IMMEX certification right is core to compliance, pricing and Mexican manufacturing economics.
What is the standard IVA rate?
16%, with a reduced rate in the northern and southern border zones; import IVA is generally payable at the border via the pedimento.
How does IVA interact with IMMEX?
Certified IMMEX manufacturers can obtain VAT relief/deferral on temporary imports, avoiding paying IVA on inputs that will be re-exported.