Collect tax in Mexico

When to register for tax collection

See Thresholds to get insights about your potential tax registration obligations in Mexico. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.

Remote sellers providing digital goods or electronically supplied services (digital products) to Mexican customers must register for VAT purposes within 30 days of the first sale to a customer located in Mexico. There are no registration thresholds or simplified registration procedures. Non-residents must appoint a legal representative and establish a tax domicile in Mexico.

• Threshold: 1 transaction
• Included transactions: Sales of digital goods or electronically supplied services (digital products)

Register to collect tax

Find more information on how to register for VAT in Mexico on the government website (Spanish).

After you’ve registered to collect tax in Mexico, go to Registrations to add your registrations to Stripe in the Dashboard. This turns on tax calculation and collection in Stripe for your transactions in Mexico.

Learn more about how to add your registration in the Dashboard.

How we calculate taxes

When both your business and your customer are in Mexico, Stripe calculates Mexican VAT unless the sale is exempt or zero-rated.

If you’re a remote seller registered for VAT in Mexico and providing services to customers located in Mexico, Mexican VAT is typically collected on sales to both individuals and business customers.

When goods are shipped into Mexico from abroad, Stripe treats the sale as an export and doesn’t calculate tax, unless you choose to calculate tax on cross-border sales of goods into Mexico through the tax registration settings. Cross-border sales of goods into Mexic might also be subject to import taxes and customs duties in Mexico, which Stripe doesn’t calculate.

Stripe Tax doesn’t support the reduced VAT rates that apply in the Northern or Southern Border Region of Mexico.

Report and file your taxes

Stripe provides reports of your completed tax transactions. Go to Registrations to access these reports. Learn more about the different types of reports.

You’re responsible for filing and remitting your taxes to Mexico. Stripe doesn’t file taxes on your behalf.