Mexico kicked off 2015 with new tax obligations to be processed electronically. The aim is to make headway towards an increasingly digital society, where business transactions are simplified, thus saving the time and money involved. In this article, we summarize the requirements laid down by the Tax Administration Service (SAT), which Mexican companies must take into account this year to comply with the legislation:
Widespread CFDI use
This requirement is nothing new. As of 2014, all Mexican taxpayers must use the Internet Digital Tax Receipt (CFDI) in their business operations. To issue e-invoicing, companies must engage the services of one of the 79 Authorized Certification Providers (PAC), whose brief is to grant the documents legal validity and declare them to the SAT.
EDICOM was the first PAC in Mexico and has different solutions that completely automate invoice generation, delivery and storage. This way, taxpayers can increase productivity and savings in their business, while complying with current regulations.
Invoice storage in XML
Taxpayers are required to store CFDIs in XML format, as paper invoices are no longer deemed valid by the SAT for tax purposes. This is the only way they will be able to make the appropriate deductions.
To ensure compliance with the preservation and safekeeping requirements for e-invoices, EDICOM holds NOM 151 accreditation. Find out more about this certificate here.
As of mid-2014, all businesses must issue their payroll in the CFDI schema, electronically. Forecasts calculate that this will achieve economic savings of up to 80% on each document.
With this new process, waiting in long lines is a thing of the past. Now workers can sign their receipts with no need to leave their workstation, thanks to solutions such as Business Mail Payrolls.
This is the main tax news for entrepreneurs in 2015. More than 200,000 taxpayers are required to start sending accounting information by electronic means this year, with different deadlines depending on the schedule set by the SAT.
In the case of corporations and individuals with annual income below 4,000,000 pesos, the deadline for taking this step is extended until January 2016.
You can find out more about this tax requirement and the solutions to comply with it here.
All taxpayers issuing withholding and payment information are required to issue the withholdings e-document, as stated by the SAT in point I.2.7.5 of the Omnibus Tax Ruling for 2014. This file contains fiscal information on the taxes withheld corresponding to certain payments made by said taxpayers.
The regulation states that taxpayers must generate a standard XML file with the information required for each item subject to withholding of taxes listed in the withholdings catalogue published by the SAT. Each invoice is then sent to an Authorized PAC to incorporate the digital tax stamp that certifies it.
Businesses and taxpayers may issue the e-document with their tax details annually, by the January 31 2015 deadline for the issuing of withholdings pertaining to tax year 2014.
Find out more this fiscal requirement.