Mexico introduced a Value Added Tax regime in 1980. Locally, it is known as Impuesto al valor agregado (IVA). It is administered by the Ministry of Public Finance and Credit.
Mexico has a range of VAT rates, including:
Businesses which supply taxable services or goods must register for Mexican VAT. This includes foreign companies with a permanent establishment. Foreign companies without a permanent establishment may not register as a non-resident trader, and cannot reclaim Mexican VAT.
VAT returns, detailing sales and purchases, must be submitted on a monthly basis. The should be filed by the 17th of the month following the period end, and any tax due paid by this date too. Returns are filed electronically only.
VAT credits may be rolled over into future months, but may also be credited back.
Annual returns are also due. In addition, monthly purchase listings must be submitted (Declaración Informativa de Operaciones con terceros.
Like a number of countries in South America, Mexican businesses are required to issue invoices on officially produced and endorsed invoices. Although since 2011, electronic invoices may be used for larger businesses, and special digital certificates must be obtained. When issuing invoices, companies must include the following information on any invoice:
Credit notes, to revert claimed VAT, must contain all of the same information.
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