Mexico E-invoice

Provinces

General

Provinces

General

About

General

About

General

Managed by the Servicio de Administración Tributaria (SAT) under the Comprobante Fiscal Digital por Internet (CFDI) system. Aims to simplify tax compliance, reduce fraud, and enhance transparency.

Implementation of mandatory e-invoicing in Mexico

Mexico’s CFDI e-invoicing system, managed by SAT, is one of the most established globally.

2011: Large taxpayers were required to issue XML invoices validated by certified providers (PACs).
2014: E-invoicing became mandatory for all businesses. Paper invoices were fully replaced by electronic ones.
2023: CFDI 4.0 introduced a new XML format, required tax ID of recipients, and stricter validations. The update became fully mandatory in April 2023.

Who needs e-invoices in Mexico?

Large Enterprises: Businesses with revenue exceeding MXN 4 million (approximately €200,000) are required to comply.
SMEs: Gradually included since 2014 based on revenue thresholds.
Exporters: E-invoicing is mandatory for export transactions, ensuring compliance with SAT and international standards.
Non-Resident Businesses: Required to issue CFDIs for transactions with Mexican entities.

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E-Invoicing vs. E-Billing

Aspect	E-Invoicing	E-Billing
Purpose	Compliance with SAT regulations	Informal or customerfocused transactions
Format	Via Authorized Certification Provider (PAC)	Not validated
Format	XML-based CFDI	Flexible, non-regulated formats
Archiving	Required for 5 years	Optional

Key features of the Mexico’ e-invoicing system

Submission Platform: Invoices must be submitted via PACs in CFDI XML format.
Validation: PAC validates compliance and issues a digital stamp.
Archiving: Digital storage for 5 years is mandatory for audit purposes.

E-Invoicing dataset

Buyer/Seller IDs: Federal Taxpayer Registry (RFC) numbers.
Invoice Details: Invoice number, issue date, and payment terms.
Goods/Services: Descriptions, quantities, unit prices, and VAT details.
Taxes: Applicable VAT rates and amounts.
Transaction Info: Total payable amount, payment method, and fiscal purpose.
Digital Stamp: Issued by the PAC to validate the invoice.

E-invoicing across transaction types

B2B Transactions:

E-invoices are mandatory for all B2B transactions.
The CFDI system ensures compliance with VAT reporting and facilitates input tax credit claims.

B2C Transactions:

Businesses must issue simplified CFDIs to individual consumers, including details of the transaction and applicable taxes.
Simplified receipts include a QR code for verification.

B2G Transactions:

Mandatory for businesses transacting with government entities to ensure transparency and adherence to procurement regulations.

Penalties for non-compliance

Fines: MXN 12,000–70,000 (€600–€3,500) per violation.
Operational Risks: Rejected invoices may delay payments and disrupt operations.
Legal Risks: Repeated violations may lead to audits, suspension of tax certificates, or reputational damage.

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April 15, 2025 1215