TUNTON Private credit · Monterrey
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IVA calculator

Add IVA (Mexican VAT) to an amount without tax, or break out how much IVA is embedded in a price that already includes it.

Total with IVA
—
At the selected rate
Subtotal (without IVA)—
IVA—

Assumptions & method

  • General IVA rate: 16% (Art. 1 of the Mexican VAT Law, LIVA). 0% rate for basic foods, medicine and other acts under Art. 2-A.
  • The 8% in the northern and southern border regions is an incentive under a presidential decree (a credit of 50% of the IVA), subject to requirements and the term of the decree: verify that your transaction qualifies.
  • Add: IVA = amount × rate. Break out: subtotal = price ÷ (1 + rate).
  • General rule: the interest on a loan triggers IVA (LIVA arts. 1-II and 14-VI), with specific exemptions in art. 15-X — residential mortgages, certain business loans from the financial system, and financing of exempt sales. Detail in our article on IVA on interest.
FAQ

The essentials, in brief

How do I extract the IVA from a price that already includes it?
Divide by 1.16 (at the general rate): a price of $11,600 contains $10,000 of subtotal and $1,600 of IVA. That's the 'break out' mode of this calculator; divide by 1.08 in the border region.
Who can invoice at 8%?
Taxpayers registered under the border-region incentive who physically deliver the good or service within the zone, meeting the requirements of the decree in force. It does not apply automatically just for being domiciled there.
Do the interest charges on a loan trigger IVA?
As a general rule, yes: financing is a taxed service, and the exemptions in art. 15-X of the LIVA are specific cases — residential mortgages, certain loans from the financial system to businesses, and financing of exempt sales. Even between private individuals the transaction qualifies as taxed (though in practice it is rarely invoiced); the detail is in our article on IVA on interest.
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