The road to technological transformation in Mexico
Mexico can currently pride itself on being one of the most advanced countries in digital control. The latest development is creation of the Digital Documents Receipt Certification Provider (PCRDD), which simplifies business management and tax administration for companies, acting as an "electronic window" that unifies procedures. However, to get here it was necessary to carry out a real paperless revolution over the past 12 years
It all began in 2004, when the Tax Administration Service rolled out the legal framework and operational regulation for Mexico’s version of the electronic invoice - the Digital Fiscal Receipt (CFD). The system gradually became increasingly important. However, this was just the starting point for the current e-invoicing setup.
It was in 2010 when, based on the CFD, the government created the e-invoice we know today as the CFDI (Digital Tax Receipt via Internet). From the outset, this new billing model required the services of an Authorized Certification Provider (PAC) to validate the document and submit it to the SAT. This is a more secure system with a greater degree of control than the previous setup and now allows taxpayers to outsource their management.
But the real turning point in Mexico’s technological transformation took place in 2011. That year, the SAT imposed mandatory use of CFDI for companies earning more than 4 million pesos. Meanwhile, the rest were able to keep on using traditional methods or the CFD.
Sometime later, in 2014, the obligation was progressively extended to all taxpayers with annual incomes above 250,000, along with electronic issuance of payroll receipts. Electronic billing in CFDi format quickly became widespread and the old CFD finally disappeared. Mexico went on to become, along with Brazil, a world leader in the use of this technology.
The expansion of e-invoicing prompted the SAT to venture even further into the new paperless technologies in order to simplify tax compliance. Last year saw the rollout of electronic accountinv for individuals and corporations. Moreover, the tax withholdings document also became digital.
In addition, the recently created figure of the PCRDD continues along the path of digital evolution the country has followed for the last 10 years. Today, EDICOM is the only Provider of Technology Services for tax purposes accredited and authorized to provide service under the aegis of the PCRDD.
With this new figure, the SAT delegates the receipt of digital documents, their semantic and syntactic validation, certification and declaration to simplify tax procedures.
For now, taxpayers with PCRDD can now submit the DPIVA electronically by a fully automated process. Nevertheless, the SAT plans to include new digital documents soon. A breakthrough that will serve to save time and economic costs for Mexican businesses.