Overview

Effective March 2026, CISA Telecomunicaciones will invoice customers located in Mexico for usage incurred in March.

In order to comply with Mexican telecommunication regulatory requirements and provide enhanced local support, Twilio is transitioning all billing for customers located in Mexico to our local entity, CISA Telecomunicaciones. By billing through a local entity, Twilio can comply with the local regulations and provide customers with valid tax invoices necessary for local tax deductions, ensuring your organization remains compliant with regional fiscal obligations while receiving localized billing services.

This guide explains how CISA Telecomunicaciones will charge taxes and which services are subject to taxation.

Environment

legacy Twilio Console

Frequently Asked Questions

When will CISA start charging VAT in Mexico?

CISA Telecomunicaciones will begin collecting VAT on services sold to both business and individual customers located in Mexico starting from March 2026.  VAT for the previous month is assessed and applied to your account at the start of the following month. For example, you will be charged VAT for your March usage in April.

Are there any exemptions from VAT?

CISA Telecomunicaciones is a local entity, and local entities are required to impose VAT on both B2B and B2C customers in Mexico. There are no general exemptions provided under the Mexican VAT law for the type of telecommunications and digital services that CISA provides. This includes but is not limited to schools, universities, charities, religious organizations, etc.

What information do I need to provide for my invoice to be valid (CFDI) compliant?

In Mexico, all VAT-registered businesses are legally required to issue electronic invoices, known as CFDI 4.0 (Comprobante Fiscal Digital por Internet).  These invoices are validated in real time by the Mexican Tax Authority (SAT) and must include specific taxpayer information to be considered valid for tax purposes.

To issue a compliant CFDI 4.0, CISA Telecomunicaciones must receive from you the same information registered with SAT, exactly as shown on your Constancia de Situación Fiscal.

Please ensure you enter the following details in your Billing Preferences page in Twilio Console:

• Razón Social / Registered Business Name – exactly as it appears on your Constancia de Situación Fiscal (field “Denominación o Razón Social”). If you are a Persona Física, please provide your full first and last names.The name must be entered without accents. Commercial or trade names are not accepted, enter only the legal name as shown in the SAT “Denominación/Razón social field”, without capital regime wording.
• RFC (Registro Federal de Contribuyentes) – must match SAT records.
• Fiscal Regime (Régimen Fiscal) – select the option corresponding to your Constancia de Situación Fiscal.
• CFDI Use (Uso del CFDI) – choose the option that best describes the intended use of the invoice (for example, “G03 – Gastos en general”).
• Postal Code (Código Postal) – the ZIP code of your registered tax address (mandatory field).
   

Important:
If your RFC, name, or postal code are invalid or missing, your invoice will be automatically issued sin efectos fiscales (without tax effects) and cannot be used for tax deduction purposes. Please double-check your Constancia de Situación Fiscal before saving your information to avoid issues.

Each invoice (CFDI 4.0) issued by CISA Telecomunicaciones includes all information required by SAT, such as your RFC, service description, applicable taxes, UUID, and timestamp, and is delivered in both PDF and XML formats.

What rate is VAT charged in Mexico?

Twilio’s services will be subject to the general VAT rate in Mexico, currently 16% as per SAT (Servicio de Administración Tributaria) regulations.

Example calculation:

Total taxable sales: $1,000 MXN

Value Added Tax (VAT) @ 16%: $160 MXN

= Total sales including taxes: $1,160 MXN

How is VAT determined?

VAT is applicable based on the type of services purchased and the location of the customer. Most of Twilio’s cloud communication and software services are subject to VAT in Mexico.

Please confirm your service address is up to date in the Twilio Console for accurate taxation. For help updating your service address, see How do I Update my Billing Settings.

Are telecom products subject to any special taxes in Mexico?

Yes. In addition to VAT, certain telecom-related services provided by CISA Telecomunicaciones may be subject to the Impuesto Especial sobre Producción y Servicios (IEPS) ; a federal excise tax applicable to specific services including telecommunications.

Twilio has determined that telecom products may be subject to IEPS when consumed by customers located in Mexico.

How is IEPS calculated?

IEPS is calculated based on the type of telecom service provided and may vary depending on applicable rates defined by Mexican tax authorities. Currently, the general IEPS rate for telecom services is 3%.

Example calculation:

Base telecom service: $1,000 MXN

IEPS  3%: $30 MXN

Subtotal (before VAT): $1,030 MXN

VAT  16% on subtotal: $164.80 MXN

Total including taxes: $1,194.80 MXN

Note: VAT is calculated on the total amount, including any IEPS charged, as per Mexican tax law.

What if my payment terms are different from the invoice date?

If credit terms are offered and payment is received later, a Complemento de Pago must be issued to record the payment officially.

When is a Complemento de Pago issued?

A complemento de pago is issued when payment is received after the invoice date, for invoices issued with payment method PPD. 

If the invoice is paid in full at the time of issuance (PUE), no complemento de pago is required.

Under Mexican tax rules, the complemento de pago must be issued by the 5th day of the month after the payment is received. For example, if payment is received in March, the complemento de pago must be issued by April 5.