Mexico e-invoicing and live reporting- CFDI
Mexico mandated the use of e-invoices and live reporting to the tax authorities in 2011 for large taxpayers. It was extended to all businesses in 2014. Previously, invoice issuance was paper, but controlled on government-licensed printers.
The process is designed around the Comprobante Fiscal Digital por Internet (CFDI) electronic invoice, made up of an XML file and a PDF readable version. This is digitally certified by the Mexican Servicio de Administracion Trinutaria, SAT.
Process to generate approved CFDI e-invoices
Set-up:
- Taxpayers must register with SAT for a Federal Taxpayer Registration
- They should also obtain a unique electronic signature key (FIEL) and Certificado de Sello Digital (CSD) digital stamp from SAT
- Appoint a government-approved e-invoicing company (PAC) to validate and stamp invoices as they are issued. The PAC also provides secure storage and retrievable for invoices
CFDI invoice issuance:
- The vendor produces an e-invoice with the customer and taxable service details. This must have a unique vendor invoice number
- It then electronically transmit this to the PAC, which validates, and returns with the vendor's CSD stamp
- The PAC simultaneously sends the stamped CFDI to the SAT
- The vendor's accounting system will then produce the PDF version of the invoice
- The XML version of a CFDI must include the issuer's FIEL
- To cancel a CFDI, a request by the vendor must be submitted via the PAC. A credit will not be permitted. The customer must then approve or reject the request within seventy-two hours.
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