United States

US, Mexico & Canada e-commerce sales tax & duty thresholds

October 12th, 2018

As part of the NAFTA renegotiation completed on 1 Oct 2018, the US has secured a rise in the duty-free threshold for e-commerce sales from US marketplaces to consumers in Mexico and Canada. The new NAFTA replacement deal is known as United States-Mexico-Canada Agreement (USMCA). Currently, US online sellers, including eBay and Amazon, shipping to …


Mexico reintroduces border reduced VAT

July 7th, 2018

Mexico is planning to reintroduce a reduced VAT rate in the 19 mile border area next to the US border. The rate for standard supplies will be 8% compared to the regular 16%. Until 2013, there was a reduced VAT rate of 11% in operation near the border.


Mexico raises VAT to 16% on readymade snacks and foodstuffs

July 5th, 2015

The Mexican government has re-categorised readymade foods from the reduced VAT rate of 0% to the standard rate of 16%. The new rate was brought into effect on 1 July 2015. In accordance with the Mexican VAT Law, any food prepared ready to eat at the point of sale is considered as readymade and subject …


Mexico VAT credits on temporary imports

August 23rd, 2014

Mexican VAT payers will now be entitled to import VAT refunds for goods imported temporarily. The relief will be conditional on claims being submitted within a year of the VAT being suffered. The new regime will be back dated to January 2014 for companies registered under the special tax on production and services, IEPS. The …


Mexico improves exporters’ VAT scheme

July 28th, 2014

For business with foreign imports, but mostly only export sales – and therefore a regular excess in import VAT – the Mexican VAT regime to help accelerate VAT refunds has been improved further. Mexican IMMEX VAT refunds Where an importer (for later export) brings supply chain goods into the country, it must pay 16% Mexican …


Mexico imposes electronic VAT invoices April 2014

March 2nd, 2014

Mexico is to require all taxable persons to issue electronic invoices from 1 April 2014. The requirement obliges Mexican businesses and VAT registered entrepreneurs to issue the Mexican VAT invoices as Comprobante Fiscal Digital por Internet (CFDI) formats, with the required digital signature. Electronic invoices must include the following details: Name and registered address of …


Mexico VAT changes

November 18th, 2013

The Mexican budget for 2014 has been approved.  This confirmed that the planned inclusion of foodstuffs in the VAT net would not go ahead. Mexican VAT reform held back. The new government had been keen to extend the Mexican VAT net to raise revenues and balance federal receipts.  Mexico is heavily dependent upon oil receipts.  …


Mexico exempts live events from VAT

October 18th, 2013

As part of its attempts to push through a range of tax reforms, the Mexican tax authorities have confirmed that they will exempt live, public events from the Mexican VAT net. Mexican VAT is currently 16%.  EU VAT rates are generally reduced for public cultural events. The other VAT measures included in the Mexican reforms …