Mexico

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 Timeline

Date	Requirement	Details
2011	Introduction of CFD	Mandatory for large businesses with revenue exceeding MXN 4 million (€200,000)
2014	Expansion to SMEs	Businesses with revenue over MXN 250,000 (€12,500) were included
2022	Transition to CFDI 4.0	Mandatory from July 1, 2022, requiring additional details like postal codes and precise taxpayer information

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.

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

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.

April 15, 2025 8