Mexico e-invoicing: 5 Questions to Ask a PAC

Scott Lewin
July 23, 2013

There is a lot of confusion in the marketplace for solutions for Mexico CFDI. To make matters worse, the timeline for implementing CFDI is looming just around the corner on December 31, 2013. In conversations with many companies, we are seeing a wide variety of solutions. Here are the five mission critical questions you need to ask your potential providers beyond the Timbre.

Important note: the Mexico government is the first government to outsource their electronic signing to third parties. Unlike the Brazil SEFAZ, Argentina AFIP or Chile SII, Mexico has taken the approach of utilizing certified third party signers on their behalf. There is often confusion in the market place that these are end to end solution providers. All a PAC is – from the true meaning of the certification, is a provider capable of producing the Timbre Fiscal. In other words, signing on behalf of the government.

From a solution standpoint, the Timbre Fiscal is 10% of the solution. In simpler terms, it is like the physical stamp you use to mail a letter home to your relatives. Someone still has to get the paper, the pen, write the letter, put the letter in the envelope, write the sending address, the return address,then place the stamp on the envelopeand finally take it to a mailbox which is picked up by someone. If I told you I was a certified letter writing service and all I did was put a stamp on the envelope – you would still be left with 90% of the work. This is the confusion with a PAC.

Ask your provider these five questions to ensure you are purchasing an end to end solution – otherwise you will be left with 90% of the implementation, monitoring and maintenance going forward.

  1. My ability to ship is directly connected to you getting me the Timbre Fiscal on time. If your signing service is not working, what is your back up plan for contingency? How do you ensure that a bottleneck or service interruption doesn’t affect my ability to ship?
  2. Who is responsible for extracting the data out of the ERP system and converting it into the format required for certification? Do you write the extraction code and maintain it through government changes or customer addenda requests?
  3. Who is managing the printers? Do you automatically send to the printers based on distribution rules or do I have to go to your portal and physically print an invoice?
  4. Who manages the distribution of the invoice to my end customers?
  5. If the government or a customer has a change, is this covered under your support contract or do I have to contract with you each time there is an update? What is covered by your support contract – does this include all of the ERP extraction, printing rules, distribution rules, addenda, or does this just cover the Timbre?

I will explore these concepts in more detail in future blogs.

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

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 […]

Tax Information Reporting United States
June 5, 2019
IRS Promises Clarity on Crypto Tax Regulations This Month

For the second time in the last month, the IRS has alluded to forthcoming guidance related to cryptocurrency and digital asset transactions.  IRS Commissioner Charles Rettig said in late May that clarification on crypto tax regulations might arrive by the end of June and gave further hints as to what might be included in the […]