The Three Main Taxes to Pay When Operating in Mexico In Mexico, the tax year follows the calendar year, ending on the 31st of December. The national tax system in Mexico is administered by the Mexican Tax Authority (SAT). Taxes are obligations of the citizens to contribute to public spending, as well as to direct the production and distribution of goods and services. The collection of taxes is the most important instrument of economic policy that the state imposes. Mexican invoicing and taxes go hand-in-hand. Accounting and Taxation Requirements – Invoicing and Taxes in Mexico Value-Added Tax (IVA) is a tax on consumption which most providers of goods and services pay. The business opportunities in Mexico are endless and are strongly influenced by a great strategic location, policies that welcome foreign trade , and a large and skilled labor force. Depending on the size of the company, and the different business activities that it conducts, different legal and financial obligations will apply.

Many international companies have discovered that doing business in Mexico can be a very profitable investment. In addition, smart accounting can lead to substantial savings in time, money and resources. A thorough understanding will ensure that you avoid any penalties that could arise from not fulfilling your duties. It is important that you understand your business obligations when operating in Mexico. This article offers an overview of the tax and accounting requirements for both local and foreign companies operating in Mexico.

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