For the past years, US companies have moved to Mexico for manufacturing or business expansion. Mexico is perceived as a skilful high-quality manufacturer, yet economically growing at an acceptable rate. Moving to Mexico has definitely some advantages, but there are also plenty of requirements to be considered, such as electronic invoicing, which is mandatory in this Latin American country.
In Mexico, electronic invoices are known as CFDI, which stands for “Digital Invoice Via Internet”. This isn’t just a digital version of a paper-based invoice, but a file that follows a pre-established format and that must be certified by the Mexican Government to guarantee its authenticity.
Mexico was the second state in Latin America to develop an electronic invoicing model. It was in the year 2004 when the Tax Administration Service (SAT) designed the Digital Tax Receipt, known as CFD, which was updated in the year 2014 to CFDI.
Due to the fiscal policies rolled out in 2014, the majority of taxpayers are required to use the CFDI system in Mexico. As a result, over 4,500 million CFDI were issued between January and November 2014.
What makes a CFDI different?
CFDI shares some characteristics with other electronic invoices around the world. One of them is integrity: once it has been created, it can no longer be modified without any change leaving a trace. Authenticity is also guaranteed, since the company issuing the document can be easily verified through its digital certificate.
CFDI also has some specific requirements, imposed by the Mexican Government. For example, any company issuing electronic invoices in Mexico must possess a digital certificate approved by the SAT.
CFDI is anything but a simple digital document. This specially formatted file needs to follow a series of steps before being ready for delivery. This is why each official CFDI is unique, and therefore a powerful tool used by the Government to fight tax evasion.
The CFDI route
But how does it all start? Once the company has a valid digital certificate, its invoices must be registered in a system that can automatically note the exact time at which the invoice was generated. Then, an e-Invoicing solutions provider approved by the Mexican Government, such as EDICOM, must verify that this file complies with all the established regulations. If everything is in order, a unique certificate number will be added.
The e-Invoice will be then ready to be sent, and the Mexican Government will be notified within 72 hours of its creation.
Successful CFDI with EDICOM
EDICOM is approved by the Mexican Government as an e-Invoicing solution provider, and is therefore ready to make sure that CFDI issued by companies comply thanks to its Mexican e-Invoicing solution, which offers an up-to-date service ready to cope with any update in the e-Invoicing landscape thanks to the work of a Permanent Electronic Invoicing Observatory.