USMCA cross-border invoicing (US, Mexico, Canada)
What the USMCA changed for invoices that cross the US, Mexican, and Canadian borders, and why a commercial invoice is not the same as a domestic tax invoice.
The United States-Mexico-Canada Agreement (USMCA) replaced NAFTA on July 1, 2020. Qualifying goods can move between the three countries with reduced or no duties, but only if they meet the rules of origin and the exporter, producer, or importer claims the preference. Each country keeps its own indirect tax. The US has state sales taxes and no federal VAT. Mexico has IVA and requires electronic tax invoices (CFDI) for domestic transactions. Canada has GST/HST, with provincial taxes in some provinces. The first joint review of the agreement took place on July 1, 2026. The United States did not agree to extend it at that point, and the agreement remains in force under its terms while annual reviews continue. Check the current position before you plan around it. 4invoices does not issue Mexican CFDI and does not prepare customs or origin documents.
- USMCA replaced NAFTA on July 1, 2020; it remains in force after the 2026 joint review.
- Preference is claimed only for goods that meet the rules of origin.
- The US has no federal VAT; Mexico uses IVA and CFDI; Canada uses GST/HST.
- A commercial invoice for customs is separate from a domestic tax invoice.
How it works
Classify the goods. Customs uses Harmonized System codes. Ask your customs broker for the code that applies to each product.
Decide whether the goods qualify. Origin depends on the product-specific rule in the agreement. Automotive goods have the strictest content rules.
Prepare the commercial invoice. It typically shows the parties, the description of goods, quantities, unit prices, the currency, and the delivery terms. Ask your customs broker what the destination country requires.
Handle the destination country's tax paperwork. Mexico's rules for tax invoices apply to Mexican taxpayers, and Canadian GST/HST rules depend on registration and place of supply. Ask a local adviser.
Prepare the certification of origin if you claim preference. The USMCA allows a certification in any format that includes the required data elements. Your customs broker or the CBP guidance lists them.
Legal references
- United States-Mexico-Canada Agreement (USMCA / T-MEC / CUSMA) — in force since July 1, 2020; first joint review July 1, 2026.
- U.S. Customs and Border Protection (CBP) — USMCA guidance, including the certification of origin data elements.
- Servicio de Administración Tributaria (SAT) — Mexico's rules for CFDI.
Frequently asked questions
Do I need a USMCA certification of origin for every shipment?
Only if you want to claim the preferential duty treatment. The certification can be prepared by the exporter, producer, or importer. Ask your customs broker how to document it.
How do I issue a CFDI from a US business?
CFDI is a Mexican tax invoice issued through a Mexican authorized provider by taxpayers registered in Mexico. If you are not registered there, ask a Mexican tax adviser what your buyer needs. 4invoices does not issue CFDI.
What about Canadian GST/HST on cross-border services?
It depends on the place of supply, your customer, and whether you must register. A small-supplier threshold of CAD 30,000 in four consecutive quarters applies in Canada. Confirm the rule for your case with the Canada Revenue Agency or an adviser.
Can 4invoices handle US, Mexican, and Canadian invoices?
Only in a limited way. 4invoices creates an invoice in any currency with an exchange rate, with a tax rate you enter per line, and gives you a PDF. It does not issue CFDI, does not prepare customs or origin documents, and does not connect to any tax authority.