Mexico Electronic Invoicing and Digital Reporting Requirements
|Indirect tax control regime||CTC|
|E-Invoicing/CTC Model||Clearance e-invoicing|
|Governing entity||Federal Service tax Administration (SAT)|
|Infrastructure/platform||SAT and accredited PACs|
|Taxpayers||Every taxpayer, except for foreign digital service providers.|
|Domestic Transactions||B2B - yes, B2C - yes, B2G - yes|
|Cross-border Transactions||Export - yes, Import- yes|
|Documents||CFDI types: Debit invoice, Credit invoice, Withholding and payment information invoice, Transportation document, Payment receipt, Payroll|
|Supplier-side requirements (AR)|
|Format(s) while sending to the platform||XML mandatory format|
|Format for exchange with buyer/recipient||XML and commonly PDF|
|Buyer-side requirements (AP)|
|Receiving document in electronic format||Mandatory|
|Acknowledgement of receipt||Optional|
|Response to the document received (Accept or reject)||Required in case of invoice cancellation|
|Archiving Abroad||Allowed for foreign digital service providers|
|Archiving Period||5 years|
|Other Digital Reporting Obligations|
|SAF-T or other accounting filings||No|
Since January 1, 2014, electronic invoicing and digital reporting are mandatory in Mexico for all types of transactions, including B2C, B2B, B2G, and cross-border.
However, foreign digital service providers should not be required to issue Mexican e-invoices. This exception was introduced with the implementation of the Digital Services Regime in June 2020.
From April 1, 2023, Mexican e-invoices (CFDI) should be issued in the CFDI version 4.0 format.
What Types of Businesses Does This Apply to?
All taxpayers, except for foreign digital service providers.
Governmental Body Responsible for E-invoicing in Mexico
|The Mexican Tax Administration Service (SAT)|
|Official website of the tax authority|
Penalties for Not Adhering to Mexico's E-invoice Mandates
- A fine of MXN 17,020 - MXN 97,330 for not issuing, not delivering, or not making available to clients CFDI online for their activities when the tax provisions establish it or issuing them without meeting the requirements indicated by the regulation; not delivering or not making available the printed representation of the CFDI, when this is requested by its clients, as well as not issuing the CFDI over the Internet that covers the operations carried out with the general public, or not making them available to the tax authorities when required.
- A fine of MXN 400 - MXN 600 for each CFDI issued and does not have the supplements determined by the general rules.
- A fine of MXN 19,050 - MXN 108,880 for issuing a CFDI with an RFC of a person other than the one who acquires the good or service or the one who contracts the temporary use or enjoyment of goods.
- A fine of MXN 760.00 - MXN 14,710 for not issuing the documentation that covers the transportation of goods.
What does the e-invoicing process in Mexico look like?
- An XML is generated inside the billing, or other systems, with the information required by SAT.
- The XML is then signed with the taxpayers signature or “CSD”. This process ciphers that XML structure and creates the Cadena Original del XML (Original String).
- The Signed XML is sent to the PAC (Proveedor Autorizado de Certificación) who receives it, validates the XML data against the Cadena Original, ensures both the recipient and the issuer of the invoice are valid entities, and the information contained inside of the XML is accurate, correct and valid.
- Once considered valid, the PAC adds a code (Folio Fiscal/UUID)to the XML and reports the transaction to SAT.
- The tax authority receives the document and records it. . This invoice will now be available and connected to the issuer and recipient in the Buzón Fiscal.
- The PAC adds the certificate to the Invoice as a Complemento (Complement), turning this Signed XML into a Valid Comprobante Fiscal Digital. This process is known as Timbrado.
- The XML is delivered to the issuer. Depending on the PAC, a PDF Print Representation may also be delivered.
Is SAF-T Needed in Mexico?
SAF-T is not required in Mexico
E-Invoicing & Global Tax Automation with Fonoa
One way to comply with Digital Reporting Requirements in Mexico is to use a provider like Fonoa.
With Fonoa you can:
- Have one integration for your global needs, including Mexico
- Save time and money by automatically cleaning your data to minimize errors and manual work
- Utilize our validation mechanisms to ensure reporting accuracy, data completeness, full control, and compliance
- Rest assured that transactions are successfully reported or queued for internal investigation with our retry mechanisms
- Get full visibility with our dashboards by filtering criteria, analyzing granular transaction data, and quickly importing /exporting information