Mexico eInvoicing – NO CFD Grandfather clause, You Must Move to CFDI by December 31, 2013 – Link to Mexican SAT Tax Authority

Scott Lewin
June 6, 2013

With the announcement on May 31, 2013 of the updates to einvoicing in Mexico, there is a huge amount of interest – yet one potential misunderstanding of many companies. There are no old CFD paper “grandfather” clauses in the updates.

Many organizations have been lulled into a peaceful sleep with the older knowledge that the government would still accept CFD. This is because in the past (and by past I mean before May 31, 2013) you could still send CFD XML if you had been doing CFD prior to Jan 1, 2010. There have been a number of CFDI mandates since then, and the CFD “grandfather” clause had always applied. UNTIL NOW — in the resolution posted on the Mexico SAT website CFD is no longer viable as of January 1, 2014:

The following is the (google) translated version of the latest update from the Mexican SAT Tax Authority

Starting in 2014, all taxpayers who use the Digital Tax Receipt scheme (CFD) scheme should use the Internet Digital Tax Receipt (CFDI) to issue electronic invoices.Starting in 2014 taxpayers with incomes above 250 000 pesos in the year, must use CFDI scheme to issue electronic invoices.All taxpayers can adopt electronic invoicing, regardless of income they have.Those with incomes less than or equal to 250 thousand dollars, may continue to use paper invoices.Electronically To bill only requires the Advanced Electronic Signature, process a digital seal certificate and use the free service offered by the SAT billing or, choose from any of the Authorized Provider Certification 66 that may locate in the Portal of the SAT.since 2005, the Tax Administration Service has been gradually transitioning to this new scheme.The simplification process has eliminated paper invoices through an authorized printer, which was in force until December 31, 2012 and now the Digital Tax Receipt currently in force is eliminated December 31, 2013.Taxpayers using the electronic billing have seen their benefits in terms of safety and speed in issuing vouchers, decreased to 85 percent in costs, optimization of internal controls, improvement in technological processes and attention to customer service, reducing errors in the process of generation, capture, storage and delivery and more control documentary, so have been gradually increasing their use, and decreasing or eliminating the printed receipts issued, decreased attention span to refund requests, eliminating of discretion in the areas of payment failing people involvement, reducing validation times and capture of invoices received, attested copy removal and as a receiver, there are more elements to identify false vouchers.Legal basis: (78 kB) Second Resolution of Amendments to the Fiscal Resolution 2013 and its annex 3

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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.
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