In Mexico, e-invoicing is mandatory for businesses as per the government regulations. The Mexican government introduced the e-invoicing system, known as CFDI (Comprobante Fiscal Digital por Internet) to streamline tax collection and reduce tax evasion.
Here is how e-invoicing works in Mexico:
- Obtain a digital certificate: To start using e-invoicing, a business must obtain a digital certificate from an authorized certification provider (PAC). This certificate ensures the authenticity and integrity of the electronic invoices.
- Generate the invoice: Once a business has a digital certificate, it can generate electronic invoices using an authorized software program. The invoice must follow the prescribed format and contain specific information, such as the business name and tax ID number, the customer’s name and address, and the details of the products or services provided.
- Submit the invoice to the government: After generating the invoice, the business must submit it to the government’s tax authority, known as SAT (Servicio de Administración Tributaria). The invoice is submitted through the government’s online portal or through an authorized software program.
- SAT validates the invoice: Once the invoice is submitted, SAT validates it and assigns it a unique identification number. The invoice is then sent back to the business with a digital signature.
- Send the invoice to the customer: The business must then send the electronic invoice to the customer. The customer can access the invoice online or receive it via email.
- Store the invoice: The business must keep a copy of the electronic invoice for at least five years, in case of an audit by the tax authorities.
Overall, e-invoicing in Mexico is a secure and efficient way to manage invoices and comply with tax regulations. It also helps businesses save time and money by reducing paperwork and the need for physical storage of invoices.
Source: Chatgpt
