In 2016, the retail volume sales of cigarettes in Mexico registered a rise, which was due to the decrease of the illegal trade, causing higher consumptions of the legal tobacco products. New cigarette developments, such as the flavor capsules, also positively influenced the cigarette sales during the same year. In this article, our Mexico company formation agents present a few details related to selling tobacco in Mexico.
The General Law on Tobacco Control in Mexico
The sale of tobacco products in Mexico is mainly effectuated under the provisions of the General Law on Tobacco Control.
According to this law, the sale of tobacco products in this country must follow these regulations:
• The information on the tobacco items presented in the points of sale have to be equal for all similar items and have to consist only of their name and price, under certain conditions. Our company formation consultants in Mexico can provide more information on these conditions;
• Those who display tobacco items found in places which market, sell, distribute, supply or dispense tobacco items have to include these information:
o A telephone number provided by the Secretariat to give advice and guidance in connection with the treatment and assistance centers on tobacco use cessation and which have to be placed in visible locations;
o The legend displaying that the sale of cigarettes by the unit is not allowed;
o The legend displaying that the sale, trade, distribution or supply to children younger than 18 years of age is not allowed;
o The text which states that anyone can report to a certain telephone number a person for non-compliance;
o Others, as issued by the Secretariat.
Taxation on cigarettes in Mexico
Tobacco items in Mexico are taxed with an excise tax called the Special Tax on Products and Services (STPS). Our Mexico company registration advisors can offer more details on this tax. We can also assist you in setting up a company in Mexico.
This tax is comprised of a specific and ad valorem tax. For manufactured cigarettes, the ad valorem tax rate is calculated based on the wholesale costs. Tobacco products in Mexico also incur VAT.
If you require further information on the tobacco industry in Mexico, or for help to open a company in Mexico, please do not hesitate to get in touch with us.
You can find out more on any tax obligations or special fees charged to tobacco operators from our accountants in Mexico. If you need accounting services for your activity, our team remains at your disposal.
Our accountants can also provide payroll services, regardless if you hire Mexican or foreign workforce. Please contact us for bookkeeping services designed for the needs of your company.