Mexico VAT calculator at 16% and 8%.
Add VAT (IVA) to a subtotal or back it out of a total, to the cent. The 16% general rate and the 8% border-region rate, with the formula behind each result.
Result
Subtotal $1,000.00. VAT 16% $160.00. Total $1,160.00.
- Subtotal
- $1,000.00
- VAT 16%
- + $160.00
- Total
- $1,160.00
For information only. It does not replace advice from your accountant.
How it's calculated
VAT is calculated on the pre-tax value and rounded to the cent, as on a CFDI.
Formulas
- Add 16% VAT
- VAT = Subtotal × 0.16Total = Subtotal + VAT
- Remove 16% VAT
- Subtotal = Total ÷ 1.16VAT = Total − Subtotal
- 8% rate (border region)
- VAT = Subtotal × 0.08Subtotal = Total ÷ 1.08
- Rounding
- To 2 decimals; half a cent rounds up
Legal basis
16% VAT
The tax is calculated by applying the 16% rate to the value of the transaction and is charged expressly and separately.
Source:VAT Law (LIVA), art. 1o., second and third paragraphs (opens in a new tab)
8% VAT in the border region
Tax incentive: a credit equal to 50% of the VAT rate, applied directly to the rate, on sales of goods, independent services or leasing from establishments in the northern or southern border region. It requires a notice filed with the SAT and delivery of the goods or services within the region; it does not apply, among other cases, to sales of real estate or intangibles. In effect through December 31, 2026.
Source:Northern border decree, arts. Eleventh to Thirteenth (DOF 12/31/2018) (opens in a new tab)Southern border decree, art. Tenth (DOF 12/30/2020) (opens in a new tab)Extension to 12/31/2026 (DOF 12/31/2025) (opens in a new tab)
Transactions without 16% VAT
Some transactions are taxed at 0% (for example, food and patent medicines) and others are exempt (for example, the sale or rental of a home). In those cases no 16% VAT is added.
Source:VAT Law (LIVA), arts. 2o.-A, 9o., 15 and 20 (opens in a new tab)
For information only: it does the arithmetic with the current rates, but it does not determine whether your transaction is subject to VAT or at which rate. Ask your accountant for that.
Frequently asked questions
Common questions when calculating VAT on an invoice in Mexico.
How is 16% VAT calculated?
Multiply the subtotal (the price before VAT) by 0.16 and round to the cent. For $12,500.00: 12,500.00 × 0.16 = $2,000.00 of VAT and a $14,500.00 total.
How do I remove VAT from a price that already includes it?
Divide the total by 1.16 to get the subtotal, then subtract it from the total to get the VAT. For $14,500.00: 14,500.00 ÷ 1.16 = $12,500.00 subtotal and $2,000.00 VAT. Don't multiply the total by 0.84: taking 16% off the total gives a subtotal that is too low ($12,180.00 in the example).
Who can invoice with 8% VAT?
Taxpayers with establishments in the northern or southern border region that filed the notice with the SAT, for sales of goods, services or leasing delivered or provided in that region. The incentive is in effect through December 31, 2026 and does not apply, among other cases, to sales of real estate or intangibles.
Why is the VAT on my invoice off by a few cents?
On a CFDI 4.0, VAT is calculated for each line item and then added up. If the invoice has several items, the sum of the rounded VAT amounts can differ by a few cents from VAT calculated on the overall subtotal. That's expected: the per-item calculation is what counts on the invoice.
Is VAT calculated before or after the discount?
After. On a CFDI, the VAT base for each line item is the amount minus the discount; the rate is applied to that base.
Does this calculator replace my accountant?
No. It's an informational tool: it does the arithmetic with the current rates, but it does not determine whether your transaction is subject to VAT, at which rate, or what your obligations are. Ask your accountant for that.
More tools
- Withholding calculatorISR and VAT withheld on professional fees, rent, RESICO and freight, with the legal basis.
- Verify a CFDI with the SATCheck whether an invoice is active or canceled using the SAT's public service.
- SAT catalogsProduct and service keys, units, tax regimes, CFDI uses and the rest of the official catalogs.catalogoscfdi.com(opens in a new tab)
- Validate an RFCCheck the structure and check digit of an RFC (Mexican tax ID) before invoicing.catalogoscfdi.com(opens in a new tab)
- How to fill out a CFDI 4.0Field-by-field guide to the invoice, with the catalogs that apply to each one.catalogoscfdi.com(opens in a new tab)
- CFDI use by tax regimeWhich CFDI uses each recipient tax regime accepts.catalogoscfdi.com(opens in a new tab)
Issue your CFDI with the VAT already worked out.
10 free stamps, no credit card. Ultra-fast stamping, valid with the SAT.