Government compliance - Mexico
E-Invoicing
In Mexico, properties are required to use electronic invoicing for all their business transactions. The electronic invoicing in Mexico is known as CFDI (Digital Tax Receipt via Internet) and must follow a specific format prescribed by the SAT (The Mexican tax authority).
In 2017, the Mexican tax authority (SAT) introduced CFDI 3.3 (Comprobante Fiscal Digital via Internet). As of January 1st, 2022, the SAT has released CFDI 4.0, the successor of the previous version.
The Mexican tax authority has set a “grace period” during which CFDI 3.3 and CFDI 4.0 can coexist to let companies adjust to these new regulations. This “grace period” has ended on December 31st, 2022, which makes CFDI 4.0 mandatory as of January 1st, 2023.
Users must have a digital certificate called the e.Firma. With this certificate they can apply for a second certificate called the CSD made specifically to sign CFDI documents including electronic invoices. Both certificates are issued by the SAT.
Format
The CFDI is a structured file in XML format used to declare different tax documents to the Mexican tax authority (SAT). Some of those documents are the invoice, payrolls and withholding documents.
It is mandatory for the issuer to sign all invoices. There is also a second digital signature called the “Digital Seal”, generated by a SAT accredited PAC (Authorized Certification Provide) after validating the invoice.
Fiscal Control
The “Digital seal” is the element that gives the document validity in front of the SAT. all CFDIs must be digitally sealed by a PAC which then reports the document to the SAT online so the SAT makes it available to the issuer and recipient in their tax portal.
Print format
There is a format for the graphic representation of the CFDI XML to facilitate printing and its visualization. This format’s content is regulated and must include a two-dimensional barcode that links to an official SAT page where the authenticity of the document can be verified.
Archiving
5 years for issuers and recipients. Documents must be archived according.
Disclaimer: Please note that this is for information purposes only. It does not constitute a legally binding document so you should also consult your local requirements.
