Your Mexican bank will have to report the interest on that account to the IRS. It is important to report that interest on your tax return on Schedule B. If it is over US$10,000, then you have to file what is called the Foreign Bank Account Report (FBAR).

Does the US have an income tax treaty with Mexico?

The United States – Mexico Tax Treaty covers double taxation with regards to income tax and capital gains tax, however, as mentioned earlier, due to a Saving Clause, the benefits are limited for Americans expats in Mexico. By doing this, the vast majority of US expats in Mexico won’t end up owing any US income tax.

Do US citizens pay sales tax in Mexico?

In Mexico, a Value-Added Tax is applied to the sale of most retail goods and services. This tax is 16% in most of the country and 11% in border areas. You will see this VAT added onto the bottom of sales receipts just as would see sales tax added, north of the border.

Is VAT recoverable in Mexico?

Creditable VAT paid on purchases and expenses in excess of VAT collected from customers is recoverable via either a refund, offset against other Federal taxes, or a credit against subsequent VAT liabilities. In addition, VAT overpayments may be used to offset the tax liabilities arising from other federal taxes.

How much money can a US citizen have in a foreign bank account?

Any U.S. citizen with foreign bank accounts totaling more than $10,000 must declare them to the IRS and the U.S. Treasury, both on income tax returns and on FinCEN Form 114.

What do I need to send an invoice in Mexico?

Senders of digital invoices will need to possess a digital certificate, approved by the Mexican Tax Authority, which they will use to generate their electronic invoices.

When did electronic invoicing become legal in Mexico?

On September 14, 2010, new rules that specify the use of electronic invoices were published by the Mexican Government.

How does a foreign company Bill in Mexico?

In the case of the alienation of goods or the granting of their use or temporary enjoyment, the amount of taxes withheld, as well as the taxes transferred, are separated from each of the corresponding tax rates Many Mexican companies already have customers billed electronically abroad.

Can a US citizen enter Mexico as a Mexican citizen?

It is considered to be the 28th most powerful passport globally and it provides a Mexican citizen visa-free access to a whopping 139 countries which includes Europe’s Schengen region as well. Entering Mexico is simple if you are a citizen of the US, most of Western Europe, or from certain Latin American countries.