Taxes on Sales/Purchases 

Use

Sales and purchases in Mexico are liable to VAT (value-added tax), and in some cases, IEPS, a form of excise duty.

Features

VAT and IEPS are not recognized until a payment is made. For this reason, you use the system’s deferred tax functions.

Business Transactions

You record VAT and IEPS as deferred taxes, and then transfer them to normal tax accounts once a payment has been made (see Deferred Tax Transfer).

Tax Returns

You prepare VAT returns using the VAT return report provided for Mexico.