Mexico eInvoicing CFDI 2013 – No Time to Waste

Scott Lewin
September 18, 2012

There is a storm of activity coming from Mexico in the next 18 months. I am speaking about the transition from CFD to CFDI for Mexico eInvoicing compliance.

Many companies are coming up on their deadlines for converting to CFDI in December of 2012 and early Q1 of 2013. However, many companies are waiting too long to address the project needs. This will be a costly mistake and a potential audit risk to the controllers responsible for the books in Mexico. Remember, Mexico’s SAT considers non-compliance with the laws a criminal offense: punishable by both fines and JAIL TIME.

The issue that most companies don’t understand is that there will be many companies that have to transition to CFDI, not just them. The industry estimates that less than 10% of invoices have been transitioned to CFDI. This leaves over 90% of the volume needing to transition in the future. Here are a few things to remember as you start to rush your evaluation:

  • A PAC is not enough. PAC’s are authorized to sign on behalf of the government. However, for an SAP user, it is only 15% of the workload. The changes in the real time processes require quite a bit of SAP configuration.
  • Don’t wait — you could be out of compliance and this carries fines and jail time
  • The CFDI process is a real-time process for outbound factura. Meaning much like Brazil, the invoice must be approved prior to shipping your goods.
  • YES, Inbound Validation is mandatory. The SAT states very clearly for CFDI that if you are deducting your taxes (i.e. paying your taxes on the net and subtracting the taxes you pay your suppliers from what you charge your customers) then you must validate the inbound invoice. – Remember a massive number of companies will be converting from CFD to CFDI – which means your volume of INBOUND electronic invoices will grow dramatically. Make sure you are ready to process this inbound volume.

Procrastination and government mandates do not mix. Ensure you understand your migration time lines with your finance teams, as well as, engaging your IT experts to put together a project plan and ERP evaluation ASAP

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Scott Lewin

Gain timely insight and important up to the minute information about the current legislative changes in Latin America, including Brazil Nota Fiscal, Mexico CFDI, Argentina AFIP and Chile DTE. Learn how these changes affect your operations, your finances and also your Information Technology teams.
Share This Post

Sales & Use Tax United States
June 17, 2019
South Dakota v. Wayfair One Year Later – Retrospective and Look Ahead Webinar

Since the groundbreaking Supreme Court decision in South Dakota v. Wayfair last June, tax compliance requirements of sellers have undergone a seismic shift. In recent months, we have also witnessed a series of after-shocks directed at setting the foundation for U.S. sales tax compliance in the modern age. In a live webinar and Q&A, “South […]

United States
June 14, 2019
Sovos Again Named a Top Workplace Based on Employee Satisfaction

Earlier this week, the Star Tribune (Minneapolis, MN) released its annual list of Top Workplaces. The newspaper compiles this list based on employee satisfaction scores for companies across Minnesota. Sovos has once again been named to this list as a national standard setter of leading workplaces because of the actions we take to put employees […]

E-Invoicing Compliance EMEA
June 13, 2019
French VAT Fraud Prevention Package to Include a New Attempt to Mandate B2B E-invoicing

The French Minister of Public Accounts and Action, which has authority over all tax matters, has taken advantage of the process that is required to transpose the EU E-Commerce Directive to launch a number of initiatives to curb VAT fraud, including a renewed attempt to create a system of mandatory e-invoicing. Going from B2G to […]

June 13, 2019
Knowing When and How to Reclaim IPT

An insurer may need to reclaim insurance premium tax (IPT) from a tax authority for many reasons. These include a policy cancellation or mid-term adjustment, an administrative error or issuing a no claims bonus. In each case, it’s important to be aware of the issues involved ahead of any reclaim to ensure taxes are recovered […]

Sales & Use Tax United States
June 7, 2019
Marketplace Sales Tax Collection Rules and Current State of Affairs

Marketplace sales tax laws are being used by states as an additional means to collect more sales tax revenue from remote sellers on marketplaces like Amazon, eBay, Etsy, and WalMart. These online marketplaces and the rules being introduced to compel marketplace tax compliance have introduced new sales tax collection and remittance questions and complexity. According […]