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Free tool

VAT Calculator

Add or extract VAT from any price. Pick the country or type the rate you need.

The rate is filled with the country's standard rate. Change it if a reduced rate applies, Mexico's border-region rate (8%) or your state's rate in Brazil.

Subtotal

Total

Standard VAT rates in Latin America

The standard rate in each country. Some products and regions have reduced rates or are exempt.

Mexico IVA 16%
Colombia IVA 19%
Argentina IVA 21%
Chile IVA 19%
Peru IGV 18%
Ecuador IVA 15%
Uruguay IVA 22%
Brazil ICMS 18%
Costa Rica IVA 13%
Panama ITBMS 7%
Dominican Republic ITBIS 18%
Guatemala IVA 12%

Frequently asked questions

How is VAT calculated?

Multiply the price before VAT by the rate. In Mexico, at 16%: 1,000 × 0.16 = 160 of VAT, and the total is 1,160.

How do I extract VAT from a price that already includes it?

Divide the total by 1 plus the rate. At 16%: 1,160 ÷ 1.16 = 1,000 subtotal, and the difference, 160, is the VAT. Subtracting 16% from the total gives 974.40, a common mistake.

What is the VAT rate in Mexico?

The standard rate is 16%. In the northern and southern border regions a tax incentive lowers it to 8% for registered taxpayers, and basic food and medicines have a 0% rate.

Why does Brazil show ICMS instead of VAT?

Brazil has no single VAT: ICMS is a state tax and its rate changes by state and product. The calculator uses 18% as a reference; type your state's rate for an exact result.

Do you invoice in Mexico?

Recaudo issues the CFDI 4.0 and the payment complement when your customer pays.