Expense rules in Mexico.
All SAT rules: 16% IVA, viáticos, mandatory CFDI and VAT recovery rules in Mexico.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 16% | 100% reclaimable | CFDI Uso de gastos |
| Travel meals | 16% | 100% reclaimable | Viáticos cap |
| Accommodation | 16% | 100% reclaimable | CFDI required |
| Fuel | 16% | 100% reclaimable | CFDI gasolina |
| Train / flight | 16% | 100% reclaimable | CFDI transporte |
| Taxi / Uber | 16% | 100% reclaimable | CFDI required |
| Client gifts | 16% | Not deductible | Atenciones a clientes |
| Parking / toll | 16% | 100% reclaimable | CFDI |
Mandatory CFDI
Digital tax receipt for every expense.
Viáticos cap
LISR Art. 28 + RMF regulation.
Retention
SAT records: 5 years.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | MXN 2,50/km | By company | Standard practice |
| Company car | ISR exempt | — | If business records |
MNC practice
Private sector standard.
Records
Date, km, purpose + fuel CFDI.
Limit
Deductibility conditions.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Mexico City / Monterrey | MXN 1,500 | MXN 4,000 | MXN 5,500 |
| Guadalajara | MXN 1,200 | MXN 3,000 | MXN 4,200 |
| Senior executive | MXN 3,000 | MXN 7,000 | MXN 10,000 |
| Foreign — USA | MXN 4,000 | MXN 12,000 | MXN 16,000 |
| Foreign — Madrid | MXN 3,500 | MXN 10,000 | MXN 13,500 |
MNC practice
Standard executive per diem.
CFDI required
Mandatory CFDI for every expense.
LISR Art. 28
Legal deduction cap.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Mexico → EU | No reciprocity | — | No agreement |
| France | No reciprocity | — | No agreement |
| United Kingdom | No reciprocity | — | No agreement |
| Switzerland | No reciprocity | — | No agreement |
| USA | No recovery | — | Sales tax not recoverable |
| MX IVA for foreign | None | — | No general mechanism |
No B2B refund
No general B2B procedure.
Maquila
IMMEX program for exports.
Outbound
MX company can recover EU VAT if registered.
Industrialize your Mexico expenses with Illizeo.
IVA 16%/8%, mandatory CFDI, LISR viáticos, multi-currency MXN↔USD↔EUR↔CHF: all the SAT rules above are natively integrated into Illizeo.
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