Made with FlowPaper - Flipbook Maker
Mexico has one of the most advanced and complex sets of e-invoicing and VAT compliance requirements in the world. Any organization doing business in Mexico has to understand and know how to manage these critical elements or risk losing money on operations south of the US border. But what do all the Spanish words and phrases associated with Mexican e-invoicing mean, and what do companies doing business there need to know as they navigate around them? Here is a map to the Mexican e-invoicing universe. A Guide to the E-invoicing Universe in Mexico CFDI Comprobante Fiscal Digital por Internet (CFDI): This is the electronic invoice itself. It must exist in a standard XML format as mandated by the SAT, the Mexican tax authority. CFDI 3.3 includes information such as a tax ID number, description of goods, total amount of the invoice, taxes due and much more. The shipper has to submit a CFDI and then receive unique a number back from the government called a UUID. Once the government generates the UUID and validates it with the receiver of a shipment, the company can ship its goods. Once the government generates the UUID and make all of the necessary business and technical validations, the company can ship its goods. Complemento de Comercio Exterior: Companies exporting from Mexico must implement this new foreign trade complemento requirement to be used any time a taxpayer is permanently exporting goods to a foreign country. Contabilidad Electrónica Complemento de Comercio Exterior Nomina Electrónica Translados Auditorías Electrónicas Buzón Tributario Complemento de Pagos Cancelación ElectrónicaAbout Sovos Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud combines world-class regulatory analysis with its secure, scalable and reliable S1 cloud software platform to create a global solution for tax determination, e-invoicing compliance and tax reporting. Contact us +1 866 890 3970 info@sovos.com Boston, Minneapolis, Atlanta, Boulder, London, Amsterdam, Santiago and São Paulo Complemento de Pagos: Depending on the type of transaction a company makes, there is supplementary information that it must provide to the SAT. In those situations, companies need to add supplements, or Complementos, to the CFDI. This electronic receipt contains additional information for transmission to the SAT, including the amount of a partial payment received and a reference to the original CFDI. (Invoices for full payment up front do not require the Pagos supplement.) Translados: This is a document that must be used when moving goods in the country. It serves to prove ownership of the goods in transfer. Cancelación Electrónica: Process in which vendors must send a notification to their clients before cancelling an invoice. The client must accept or reject the cancelation notification within 72 hours. If the client does not respond, the invoice will be cancelled. Nomina Electrónica: Electronic payroll mandates require Mexican businesses to sign payroll using unique digital stamps. Once the payroll is stamped, the company sends its XML and PDF versions to employees by mail or in person. Buzón Tributario: This e-mailbox function allows the SAT to send notifications to companies electronically in a method that is faster, more reliable, simpler, and more convenient and secure than using paper. It also keeps a digital record of all correspondence between the taxpayer and the tax administration. Auditorías Electrónicas: With e-audits, the government has total visibility into a business and the ability to levy penalties as necessary, automatically, with no intensive investigations. This unique approach to resolving audits allows companies to avoid long and costly judgments, provides legal certainty in such matters and offers transparency for all parties involved. In addition, e-invoicing provides improved accuracy and efficiency, allowing businesses to better defend themselves against potential audits within their existing ERP systems. Contabilidad Electrónica: This is the digital process of reporting accounting information. It consists of a company’s chart of accounts, trial balance, and journal entries. The combination shows how much a company owes the SAT or how much the government owes the company. Mexico requires companies to detail five different types of documents in their polizas (journal entries): sales, purchases, payroll, travel and expenses, and payments. Each entry must be linked to all corresponding transactions with the UUIDs to justify a VAT deduction. Discover how Sovos enables companies to manage VAT compliance in Mexico and minimize risk, or contact Sovos to learn more.Next >