Return to mapElectronic invoicing and e-Reporting in Mexico
Mexico has been one of the pioneering countries when it comes to the implementation of electronic invoicing. It has established a consolidated system which is recognized worldwide. In Mexico, electronic invoices are known as CFDI (Digital Tax Receipt via Internet), and their use is mandatory for all taxpayers.
Key aspects of electronic invoicing in Mexico
Since its inception in 2004, the system has constantly evolved to improve the user experience as well as optimize tax processes. The electronic invoicing system in Mexico is regulated by the Tax Administration Service (SAT), the entity responsible for establishing regulatory guidelines and overseeing compliance with digital invoicing.
One of the key aspects within this system is the role of the PAC (Authorized Certification Provider), entities authorized by the Tax Administration Service (SAT) to validate and certify taxpayers’ CFDI’s. Edicom was the first PAC in Mexico, establishing itself as a leader in the sector and ensuring efficient and secure processes for electronic invoicing.
Obligation
In Mexico, the use of electronic invoices is mandatory for 100% of taxpayers, both in the issuance and receipt of electronic documents.
This requirement covers all economic sectors and applies to companies, independent professionals, and individuals engaged in commercial activities or the provision of services.
The CFDI is not only mandatory for invoices but also for other tax documents, such as: Payroll receipts, Payment supplements, Credit and debit notes, Withholding and payment information certificates, etc.
Invoice Format
The "CFDI or Comprobante Fiscal Digital por Internet" is a structured file in XML format for electronic filing with the Mexican tax authority (SAT) for various documents aside from invoices, such as payroll receipts or employee salary slips.
CFDI 4.0 is the most recent version of the “Comprobante Fiscal Digital por Internet” (CFDI), in effect since January 1, 2022. This version represents an evolution in electronic invoicing in Mexico, establishing new provisions and requirements for taxpayers.
Electronic Signature
In the Mexican system, each and every electronic invoice (CFDI) must be signed by the issuer using their Digital Seal Certificate (CSD). This certificate, issued by the Tax Administration Service (SAT), allows the authentication of the taxpayer's identity and ensures the integrity of the document, preventing unauthorized modifications after issuance.
In addition to the issuer's signature, the electronic invoicing system in Mexico includes a second complementary electronic signature, known as the "Digital Tax Stamp" (Timbre Fiscal Digital). This stamp is generated by an Authorized Certification Provider (PAC), who is responsible for validating the content and structure of the CFDI according to the technical and tax guidelines established by the SAT.
Only after the PAC has verified the invoice complies with all regulatory requirements is the Digital Tax Stamp added, acting as a validation and authorization seal. This process not only grants fiscal validity to the document but also allows its immediate registration in SAT's systems, enabling transparency and traceability of tax information.
Archiving
In Mexico it is required to archive electronic documents for at least five years, both for the issuer as well as the recipient.
Additionally, there are complementary storage systems, such as NOM-151, which provide additional legal guarantees for stored electronic documents and allow them to be used as legal evidence before third parties.
Administrative Requirements
To issue a valid CFDI in Mexico, taxpayers must complete a series of administrative procedures, which are all managed through the SAT:
- Obtaining the ‘e.Firma’: This is a digital certificate issued by the SAT that allows the taxpayer's identity to be authenticated in electronic procedures.
- Generating the Digital Seal Certificate (CSD): This is a second electronic certificate, derived from the e.Firma, which is used exclusively to digitally sign the CFDI. Its purpose is to ensure the authenticity and integrity of each tax document.
- Hiring a PAC: The taxpayer must choose an Authorized Certification Provider (PAC), who will validate the invoice and send it to the SAT for proper registration.
Frequently Asked Questions
Below are some of the most frequently asked questions about the electronic invoicing system in Mexico.
What is a CFDI?
CFDI stands for Digital Fiscal Receipt over the Internet. It is the official electronic invoice format in Mexico and must comply with the requirements established by the SAT (Mexican tax authority).
What information must be included in an electronic invoice in Mexico?
The electronic invoice must include information such as the name or corporate name of the issuer and receiver, the RFC (tax identification number) of both parties, the folio number, the total amount of the invoice, and the type of transaction performed, among other data. It is important to verify that the invoice complies with all the requirements established by the SAT.
What is the payment complement in the electronic invoice?
The payment complement is an addendum that is added to the electronic invoice to prove the total or partial payment of the invoice. This complement is mandatory for invoices in which payment has been agreed upon in installments or credit.
Can I cancel an issued electronic invoice?
Yes, it is possible to cancel an issued electronic invoice. However, there are certain rules and requirements that must be met to do so.
Electronic Transport Document in Mexico
The “Complemento Carta Porte” is a tax requirement in Mexico that obligates carriers and parties involved in the transportation of goods to report detailed information about each shipment to the Tax Administration Service (SAT). This complement must be included in the CFDI (Comprobantes Fiscales Digitales por Internet) that accompany the transportation of goods, ensuring the traceability of operations and compliance with the country's tax and customs regulations.
Who are required to issue a ‘Complemento Carta Porte’?
All parties involved in the goods transportation chain are responsible for correctly issuing and declaring the Complemento Carta Porte along with the corresponding CFDI. This includes:
- Manufacturers and producers: They must ensure that their transported goods have the appropriate tax documentation.
- Logistics operators and distributors: They are responsible for ensuring that the goods are transported with the correct electronic receipts.
- Carriers: Whether owners, intermediaries, or transport agents, they must issue the CFDI with the Complemento Carta Porte before the goods are transported.
The complement must accompany the goods at all times, from their origin to their final destination, regardless of the means of transportation used.
Key information the Carta Porte Complement must contain
The Carta Porte Complement includes essential information regarding the transport of goods and objects, assuring its traceability and regulatory compliance. The main fields that must be declared are:
1. Location:
- Location of origin: Starting point of the goods being transported.
- Intermediate points: Places where the goods may be unloaded, temporarily stored, or transferred to another mode of transportation.
- Destination information: Final location where the transported goods will be delivered.
2. Means of Transportation
- Type of vehicle or equipment used for the transport.
- Transportation characteristics, such as capacity, operator registration, license plates, etc.
3. Transport Route. The CFDI must specify the mode of transportation used, which can be:
- Land: Via federal highways.
- Rail: By railway.
- Air: For shipments in commercial or private aircraft.
- Maritime or by river: When transportation is carried out by sea or by river
4. Tax information
- Information about the carrier and shipper.
- Shipment order number.
- Costs associated with the transport service.
- Identification of the transport operator and vehicle details.
Types of CFDIs which include the Complemento Carta Porte
Depending on the taxpayer's role in the logistics process, different types of CFDI with the Complemento Carta Porte must be issued:
- CFDI de Traslado: Issued when the owner of the goods, an intermediary, or a transport agent needs to document the movement of the goods. Its purpose is to certify the transportation of goods without involving a commercial transaction
It must be generated before the transportation begins and must accompany the cargo at all times.
- CFDI de Ingreso: Issued when a transportation service provider invoices the service of moving goods to a customer. It serves to document the commercial operation and the costs associated with the transportation.
It must be generated before the service is provided and must include all relevant information about the transportation.
Characteristics of the CFDI Payroll
The CFDI Payroll Complement is a tax requirement established by the Tax Administration Service (SAT) in Mexico to electronically document the payment of wages and salaries to employees. This complement must be generated by employers and validated through an Authorized Certification Provider (PAC) to ensure its legality and tax compliance.
The CFDI Payroll not only allows companies to meet their tax obligations but also optimizes payroll management by providing a digital mechanism for issuing, validating, signing, and storing employee payment receipts.
CFDI Payroll Solution by EDICOM
Our platform covers the entire lifecycle of the CFDI Payroll, from issuance and validation to distribution, signing, and storage of the receipts.
The main features of our solution include:
- Integration with the company's payroll management system: EDICOM's solution integrates with the company's payroll management system, automatically extracting the data necessary to generate the XML file structured according to SAT guidelines.
- Automation of the issuance, stamping, and validation of CFDI Payroll: Once the CFDI Payrolls are generated, they must be electronically stamped to grant them fiscal validity.
- Sending electronic receipts to employees for consultation and digital signature: Once stamped and validated, the CFDI Payrolls must be delivered to employees securely and efficiently. To strengthen the authenticity and security of payment receipts, our solution allows employees to digitally sign their payroll receipts.
- Secure archiving of documents with guaranteed access and retrieval: The SAT requires that CFDI Payrolls be securely stored and protected by both the employer and the employee.
EDICOM’s Travel Expenses Portal
Efficient management of travel expenses and expense reports is a key aspect of financial administration for any company. A disorganized process can lead to financial losses, delays in reimbursements, and accounting complications.
With EDICOM's Travel Expenses Portal, companies can streamline the registration and approval of employee travel expenses, ensuring regulatory compliance and automatic integration with accounting systems.
EDICOM’s comprehensive travel expenses solution
The Travel Expenses Portal is a web-based platform accessible from any browser, allowing employees to quickly and intuitively generate and manage their expense reports.
Key functionalities:
- Submission of travel expenses and expense reports with real-time tax validation.
- Automatic or customized approval based on company rules.
- Integration with accounting systems for immediate record-keeping.
- Accessibility and control from any device.
This system ensures that each reported expense complies with the company's fiscal and regulatory requirements before being processed, preventing errors and ensuring efficient resource management.
CFDI Mass Download Service
EDICOM's CFDI Mass Download Service allows companies to efficiently retrieve all their Comprobantes Fiscales Digitales por Internet (CFDI) from the Tax Administration Service (SAT) database.
With this solution, taxpayers can automate the recovery of their tax receipts, ensuring greater control, traceability, and regulatory compliance in their accounting processes.
Our platform offers two download options:
- Manual download through an intuitive web interface.
- Automation via API for integration with internal systems.
Thanks to our expertise as the number 1 Authorized Certification Provider (PAC) in Mexico, we guarantee high availability, minimal response times, and an optimized platform for managing large volumes of information.
Methods to Mass Download CFDI’s
1. SWeb Solution: Optimized manual download
Our web platform allows users to easily and intuitively make download requests:
- Accessible interface from any browser.
- Customizable search parameters.
- Graphical representation of the downloaded tax receipts.
This method is ideal for companies needing to retrieve CFDI occasionally or manage batches of receipts without requiring advanced automation.
2. Planning of recurring download
Our solution enables companies to automate the recurring retrieval of their CFDI, ensuring their tax records are consistently updated.
Benefits of download automation:
- Eliminates repetitive manual processes.
- Ensures all CFDI are retrieved accurately and on time.
- Direct integration with the EDICOM platform for further accounting management.
The request parameters and download frequency can be configured according to the user's needs, ensuring efficient integration with the company's internal processes.
3. EDICOM’S integration API: Automated CFDI Download
Our integration API allows companies' internal systems to make fully automated requests for CFDI downloads via WebServices.
How does the EDICOM API work?
- Requests CFDI based on configured parameters.
- Verifies the availability of the receipts with SAT.
- Automatically downloads the CFDI and stores them in the user's network infrastructure.
This method is ideal for companies with a high volume of transactions that require full automation and real-time synchronization with their accounting and document management systems.
Addendas
The inclusion of Addendas in the CFDI (Comprobante Fiscal Digital por Internet) is a key functionality that enhances efficiency and security in the invoicing process. This mechanism not only improves performance and organization but also optimizes communication between issuers and recipients, facilitating the management of relevant commercial and operational information for your company.
Addendas allow the addition of extra data to the CFDI without affecting its fiscal validity, as this section is used solely for commercial and administrative purposes. Thanks to Addendas, companies can include specific information such as:
- Product serial number.
- Purchase order number.
- Supplier code or number.
- Place and date of delivery.
Advanced solution for integrated Addendas in your CFDI
Our CFDI issuance solution incorporates a wide variety of Addendas, including the most commonly used by large retail chains such as Walmart, Soriana, Chedraui, among others. Additionally, we continuously analyze the most demanded Addendas across different sectors, ensuring that your company can integrate them easily and efficiently into its electronic invoicing process.
With our technology, we ensure that the generation and submission of your invoices meet the specific requirements of each client, optimizing the reception and processing of CFDI within their administrative systems.
Electronic Accounting in Mexico: Automation and Compliance with the SAT
Electronic Accounting (e-Reporting) is a tax requirement in Mexico that mandates taxpayers to keep their accounting records digitally while periodically submitting them to the Tax Administration Service (SAT) through the Tax Mailbox.
This system requires companies and individuals engaged in business activities to report their transactions in electronically signed XML files, ensuring transparency and facilitating auditing by the SAT.
Efficient Compliance with Electronic Accounting
Electronic accounting requires taxpayers to submit various types of accounting files in XML format, each one containing key information about the company's financial activity.
What are the main reports that must be submitted to the SAT?
1. Register of Accounts; Unique record of bank accounts
- This document includes all of the taxpayer's accounting accounts, detailing their specific use.
- It is transmitted only once, unless modifications are made, in which case an updated register must be reported.
2. Trial balance: Report of accounting movements
- Monthly submission: Sent in the second month following the reported period.
- Includes account movements for the fiscal year, with opening and closing balances.
- Annual report: Legal entities submit it in April, while individuals must send it in May.
3. Generated journals: Detailed record of financial transactions
- Contains information on purchases, sales, expenses, and other accounting movements.
- It is not sent regularly; it is only required when the SAT requests it to verify information or validate the origin of tax refunds and compensations.
These files must be properly structured to avoid rejections and ensure their acceptance by the SAT.
Electronic Accounting Solution by EDICOM
Our platform enables the automation of the entire electronic accounting process, integrating with the company's information systems to securely generate, validate, and submit reports without errors.
How does the automation of electronic accounting with EDICOM work?
- ERP data generation - Automatic extraction of accounting information: The platform connects with the company's ERP or accounting system and extracts the necessary data to structure the XML files in accordance with SAT's guidelines.
- Validation of the XML files - Verification of structure and regulatory compliance:
Automatic checks are performed to ensure that the data and format comply with SAT requirements, preventing the submission of incorrect information that could lead to rejections or tax penalties. - Document Safeguarding - Secure archiving with guarantee of integrity: Option to store documents in EDICOMLta, a certified archiving service that complies with NOM-151, ensuring a secure and accessible backup of accounting reports in case of audits.
- Integration and submission to the SAT - Fast and error-free delivery via the Tax Mailbox: Once validated, the XML files are sent to the company, ready for submission to the SAT through the Tax Mailbox. Additionally, we ensure that the documents are correctly received, minimizing the risk of non-compliance.
EDICOM PAC Mexico, Authorized Certification Provider
On December 16, 2010, EDICOM became the first Authorized Certification Provider (PAC) in Mexico, certified by the Tax Administration Service (SAT). Since then, it has played a key role in the validation and certification of the ‘Comprobantes Fiscales Digitales por Internet’ (CFDI), establishing itself as one of the leading PACs in the market.
Since the implementation of the electronic invoicing model based on CFDI in 2010, taxpayers in Mexico are required to use a PAC for the validation of their electronic invoices before submitting them to the SAT.
The PAC figure in Mexico
The Authorized Certification Provider (PAC) is an entity certified by the SAT, responsible for granting fiscal validity to electronic invoices in Mexico.
What are the exact functions of a PAC in the CFDI system?
- CFDI Validation: Before an electronic invoice can be submitted to the SAT, it must be validated by a PAC, who ensures that the document complies with the established fiscal and technical requirements.
- Application of the Digital Fiscal Seal (TFD): The PAC certifies the CFDI by applying a dual digital signature and assigning a unique fiscal identification (UUID), ensuring the authenticity and integrity of the document.
- Registration and delivery to the SAT: Once certified, the PAC forwards the validated invoice to the SAT, guaranteeing its proper integration into the tax authority’s database.
Obligations of a Certified PAC
As a Certified Service Provider (PAC), EDICOM must comply with a series of responsibilities established by the SAT, ensuring the security and legality of the e-invoicing process in Mexico.
- Information Protection and Compliance with the Personal Data Protection Laws: Guarantee the confidentiality of processed CFDI’s and comply with the Federal Law on the Protection of Personal Data, safeguarding taxpayers’ fiscal information and ensuring its security.
- Validation and Delivery of the Certified CFDI: Each CFDI must meet the fiscal requirements set by the SAT. A PAC is responsible for verifying compliance, assigning the fiscal folio (UUID), applying the Digital Fiscal Seal, and delivering the validated CFDI to the taxpayer with the SAT's digital stamp.
- Synchronous CFDI Declaration to the SAT: Real-time transmission of certified CFDI copies to the SAT, maintaining a constant communication flow with the tax authority to ensure document traceability.
- Access and Availability of Information for the SAT: Ensure that the SAT has remote or local access at any time for inquiries or audits, and stored copies of certified CFDIs, allowing their consultation if required by the tax authority.
- Free Platform for CFDI Generation and Consultation: Provide taxpayers with a free web tool for CFDI generation and consultation, enabling users to manage their invoices without needing additional software.
- Archiving of Certified CFDIs: Maintain an electronic archive of certified CFDIs for at least three months, ensuring their availability for any contingency or need that may arise.
Digitization and archiving of electronic data messages under NOM151
The Official Mexican Standard NOM-151-SCFI-2016 establishes the technical and legal requirements for the preservation of data messages and the digitization of analog documents, ensuring their integrity, authenticity, and evidentiary validity over time.
In a digitalized world, managing and safeguarding electronic documents is a critical need for businesses and institutions that require secure and verifiable archiving of their documents. EDICOM, as a Certification Service Provider (PSC) accredited by the Ministry of Economy, offers a comprehensive solution that enables organizations to comply with NOM-151, ensuring that their electronic documents can be used as legal evidence before third parties and authorities.
Guarantee of document integrity and authenticity
The NOM-151 standard requires that electronic and digitized documents must include mechanisms for integrity verification, providing evidence that they have not been altered since their issuance.
How is document integrity guaranteed?
- Generation of a unique digital fingerprint for each document, which is recorded in a Data Message Preservation Certificate (Constancia de Conservación de Mensajes de Datos) as per NOM-151.
- Application of a Digital Time Stamp, which certifies the existence of the document at a specific date and time.
- Safeguarding of all evidence in a secure and accessible system, ensuring availability for any audit or legal requirement.
Process of message archiving according to NOM-151
To ensure the integrity and legal validity of electronic documents, NOM-151 requires the involvement of a Certification Service Provider (PSC) accredited by the government, such as EDICOM, which issues a NOM-151 Data Message Preservation Certificate (Constancia de Conservación de Mensajes de Datos).
How does this process work?
- Request Service for NOM-151 Certificates: Generation of the document's digital fingerprint: A unique digital fingerprint (hash) is generated from the file, ensuring that any modification would be detectable. The request for a certificate is generated in ASN.1 format, following the specifications of NOM-151.
- Issuance Service for NOM-151 Certificates: Application of a Digital Time Stamp: EDICOM, as a PSC, certifies the fingerprint by applying a Digital Time Stamp, confirming that the document existed at a specific date and time. The NOM-151 Data Message Preservation Certificate is issued, ensuring the document's authenticity and integrity.
- Validation Service for NOM-151 Certificates: Verification and legal validity assurance: The issued certificates include a visual representation in PDF format, detailing the processes applied during preservation.
This process provides robust legal security, ensuring that documents remain unaltered and legally admissible over time.
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