WHAT TAXES DO I HAVE TO PAY WHEN I GO SHOPPING?

The Tax Administration Service (SAT by its acronym in Spanish) has the right to charge taxes on certain products upon their entry into Mexico, however this depends on the means of transportation in which you cross customs.

Tax exemption

The tax exemption is the benefit you have of not paying taxes when entering goods into your country, in addition to your personal luggage. Personal baggage is a list of items that do not pay taxes when entering Mexico. To know the list of items considered as personal baggage, we invite you to visit the page:

https://www.gob.mx/cms/uploads/attachment/file/447413/A_TU_INGRESO_A_MEXICO.pdf

If you enter by air or sea, the tax exemption is US$500 per person throughout the year. If you enter by land, the tax exemption is US$300 per person and during the vacation period it increases to US$500 per person in addition to your personal luggage.

The vacation period is published annually by ANAM, for 2024 the dates considered as vacation period were the following:

·        Easter Week: March 8 to April 7.

·        Summer: July 18 to August 18

·        Winter: November 28, 2024, to January 12, 2025.

It is important to mention that the residents of the border strip with the United States have a lower limit of US$150 of tax exemption during the whole year, regardless of the means of transportation by which you cross the customs.

The value of the merchandise can be demonstrated before the authorities with invoices, tickets or payment vouchers issued by the seller, since in case of not having any voucher, the customs personnel can determine the value of the merchandise.

What happens if I exceed the limits?

If you exceed the corresponding tax exemption, you must select the self-declaration lane in case of going by land.

The tax payment is equivalent to 16% of the total value of the goods, if they do not exceed US$4,000.

In the matter of limits, there is also a limit to enter or leave Mexico with money. If the money you carry is in cash, domestic or foreign checks, money orders or any other document receivable, it cannot exceed US$10,000 per person.

In case of exceeding the amount, it is necessary to declare to the customs authorities or you may be subject to a fine of 20% to 40% of the allowed amount. If the undeclared amount is greater than US$30,000, you may be subject to a penalty of 3 months to 6 years in prison and the excess will become property of the federal treasury until the legal origin of the resources is declared.

It is important to take these considerations into account when you plan to go shopping abroad,to avoid surprises or inadvertently not complying with the regulations.

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