Mexico raises VAT rate on ready made snacks and foodstuffs
The Mexican Government has re-categorised ready-made-foods from the reduced rate of 0% to the standard rate of 16% effective from the 1st of July 2015.
In agreement with the Mexican law, any food that is prepared ready to eat at point of sale is considered as ready made and is now subject to the new vat rate. This includes any ‘Fast food’, sandwiches, rolls etc. Previously, only food prepared by restaurants has been subject to VAT, under current VAT law, which remains unchanged, the supplies of supermarkets and convenience stores should also have been subject to VAT, rather than the 0 percent rate that applies to food in general.