Mexico VAT Scope change

Mexico raises VAT rate on ready made snacks and foodstuffs

The Mexican Government has re-categorised ready-made-foods from the reduced rate of 0% to the standard rate of 16% effective from the 1st of July 2015.

In agreement with the Mexican law, any food that is prepared ready to eat at point of sale is considered as ready made and is now subject to the new vat rate. This includes any ‘Fast food’, sandwiches, rolls etc. Previously, only food prepared by restaurants has been subject to VAT, under current VAT law, which remains unchanged, the supplies of supermarkets and convenience stores should also have been subject to VAT, rather than the 0 percent rate that applies to food in general.

Laura Stockley
Follow Us

Laura Stockley

Consultant at eBiz Answers Ltd
Laura graduated from University with a degree in Business Studies, and has been working as an Oracle eBTax consultant for several years now, with both R12 eBTax and Fusion (Oracle Cloud) Tax. Focussing primarily on the tax module and its components, Laura also works on the other financial modules and understands how they integrate with the tax engine. Laura has worked on projects with multiple clients covering all aspects of the tax module including AP, AR and GL, working on everything from design, configuration, testing to support. An excellent communicator, Laura enjoys interacting with end users and relishes the challenge of resolving their issues; making tax an enjoyable experience, always.
Laura Stockley
Follow Us

Latest posts by Laura Stockley (see all)