In addition to import duties, if applicable, imported goods may be subject to various internal charges or taxes, such as a customs processing fee ( derecho de trámite aduanero or DTA), value-added tax (VAT), the special tax on production and services (IEPS), or the tax on new motor vehicles (ISAN).
The Customs Processing Fee (DTA) applies to imports due to the use of customs services and facilities. Generally, the rate of the DTA is 0.008% of the declared value of the goods. Under Free Trade Agreements, such as USMCA, EUMXFTA, among others, Mexico has agreed to apply for specific DTA rates or exemptions.
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A portion of the DTA is used for the modernization of customs facilities and infrastructure.
Imports are normally subject to a 16% VAT, particularly definitive imports including temporal imports, while exports are not subject to VAT.
Although temporal imports are also subject to VAT, in theory, IMMEX companies may access a certification that allows them to avoid paying VAT either with a tax credit or a bond. In other words, a “certified” IMMEX company would have a “tax credit” equivalent to the VAT liability that should be paid when the good is temporally imported.
Other customs regimes, such as the introduction of goods into an in-bond facility ( depósito fiscal) , are not considered as an import and, thus, VAT payment is not required.
Needless to say, the VAT law includes some 0% VAT rates for certain products.
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Like VAT, the special tax on production and services (IEPS) is an indirect tax applicable to the importation of specific products and services, including goods subject to the temporary importation regime. IEPS tax varies per product or service and is expressed in rates or ad valorem , specific or a compound, that varies. In 2020, rates were adjusted to reflect inflation.
What are the goods subject to IEPS?
New vehicles are subject to the ISAN, which is a compound tax with an ad valorem component and a specific component. For vehicles bought in the country, the tax is calculated on the sales price of the vehicle to the final consumer. In the case of imports, the tax is calculated on the basis of the customs value plus import duty and other import-related duties, excluding VAT (art. 2 ISAN Law). Mexico, in fact, has a tax incentive that promotes the purchase of automobiles under a certain value
Electric motor vehicles are exempt from the ISAN in order to promote “eco” friendly means of transportation (art. 8 ISAN Law).