Mexico Tax Codes

Tax codes determine how much tax is paid on each transaction line item. Make sure that the properties and rates of your tax codes are correct.

Important:

Note that the automatic tax code provisioning feature requires that you first install the International Tax Reports SuiteApp in your account before you create the Mexico subsidiary/nexus. If the nexus already exists before you install this SuiteApp, the tax codes for Mexico are not automatically created for you, so you must create them manually. In accounts that have SuiteTax enabled, the SuiteTax Engine and SuiteTax Data Records SuiteApps provide the VAT tax type and tax codes for Mexico. For more information, see Automatic Tax Record Provisioning for VAT Countries.

For more information about tax codes, see Tax Code Properties and Creating Tax Codes.

Mexico Tax Code Table (for Accounts without SuiteTax)

The following table shows the tax properties required to generate the Mexico DIOT File (Mexico Localization). The tax code names or letters used in the following table are suggested names or default system preferences. You can rename the tax codes.

On the New Tax Code or Edit Tax Code page, check the boxes of the properties that apply to the tax code. To understand how NetSuite uses the tax codes to get the values for DIOT reporting, see Tax Code Mapping for Mexico DIOT File (Mexico Localization SuiteApp).

Important:

Please consult your tax agency for the correct tax rates.

Tax Code	Description	Rate	Property	Tax Type	Purchase Tax Account	Sales Tax Account	Available On
S-MX	Standard default tax rate for sales and purchases of goods and services traded/provided in Mexico, except for the bordering region	16%	Default Code	VAT_MX	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
R-MX	Reduced tax rate for sales and purchases of goods and services traded/provided in Mexico for specific regions.	8%	Reduced Rate	VAT_MX	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
Z-MX	Zero IVA rate for specifically defined goods and services	0%	Special Reduced Rate	VAT_MX	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
E-MX	Transactions exempt of IVA	0%	Exempt	VAT_MX	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
IS-MX	Standard IVA on import	16%	Import	VAT_MX	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
IR-MX	Reduced IVA on import	11%	Import Reduced Rate	VAT_MX	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
IZ-MX	Zero IVA rate on import	0%	Import Special Reduced Rate	VAT_MX	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
IE-MX	IVA Exempt on import	0%	Import Exempt	VAT_MX	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)
ZX-MX	Zero IVA rate for export transactions	0%	Export	VAT_MX	VAT on Purchases	VAT on Sales	Both (Sales and Purchases)

Mexico Tax Code Table (for Accounts with SuiteTax)

Tax Code	Description	Rate	Tax Rate Type	Tax Type	Available on	Receivables Account	Payables Account
MX_SR	Standard Rate	16%	Standard	VAT_MX	Both (Sales and Purchases)	Tax on Sale Mexico	Tax on Purchase Mexico
MX_ZR	Zero Rate	0%	Zero	VAT_MX	Both (Sales and Purchases)	Tax on Sale Mexico	Tax on Purchase Mexico
MX_NL	Exempt	—	Exempt	VAT_MX	Both (Sales and Purchases)	Tax on Sale Mexico	Tax on Purchase Mexico

Related Topics

• Mexico Tax Topics
• Mexico Tax Setup

General Notices