Understanding Mexico VAT: A Comprehensive Guide for Businesses Entering the Central American Market

• Mexico is a good choice for new business location due to its geographic location and growth opportunities
• Mexico has a standard VAT rate of 16% and a reduced rate of 8% for the northern and southern border regions
• VAT in Mexico is based on cash flow and must be accounted for using the electronic format A-29
• Electronic invoices are mandatory in Mexico and must be handled through a separate legal entity approved by the government
• There is no VAT threshold in Mexico, and registration is required for businesses with a permanent establishment in the country

Source: cryptomode.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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