When New York first passed its law defining what constitutes a “vendor” subject to collecting sales tax in the 1980’s, the idea of online shopping sounded like science fiction. In retrospect, NY may have effectively enacted the first “economic nexus” law when they drafted their definition of “vendor” to include a person who regularly or […]
Mexico Postpones Electronic Invoice Cancellation Policy Change until September
Mexico’s planned process change for cancellations of electronic invoices will take effect Sept. 1 rather than in July as previously announced.
The Mexican tax authority, the SAT, will require senders of electronic invoices, a document called a CDFI in Mexico, to get permission for cancellation from the party that received the invoice before the sender can cancel it. The change was supposed to take effect July 1 but will now kick in on Sept. 1, according to a recent press release from the Mexican government.
Approval of electronic invoice cancellation needed
Companies doing business in Mexico must generate an electronic invoice in the standard format with information such as a tax ID number, description of goods, total amount of the invoice, taxes due and much more. The shipper has to submit that invoice and then receive unique a number back from the government called a UUID. Once the government generates the UUID, the company can send the invoice to the client and ship its goods.
Currently, the sender can cancel the invoice using a government website without informing the receiver of the cancellation. Beginning on Sept. 1, a sender that wants to cancel an invoice will have to notify the receiver via the buzon tributario, or tax mailbox. When the receiver approves of the cancellation by buzon tributario, the sender can cancel the invoice.
Another wrinkle in the electronic invoicing process
For companies doing business in Mexico, the policy will add a manual step to the process of cancelling invoices, further complicating the already complex process of eInvoicing. Sovos, a global pioneer in eInvoicing solutions, helps companies avoid risk by empowering them to take control of eInvoicing, and create and automate repeatable processes.
With recent enforcement measures, the IRS has offered definitive proof that the Affordable Care Act (ACA) is still alive and that the agency plans to strictly enforce ACA reporting. Last spring, the agency issued Letter 226J to Applicable Large Employers (ALEs) that failed to cover 95 percent of employees. ALEs are companies with 50 or […]
UPDATE (Jan. 8): Reporting season is moving forward according to plan. The IRS has announced that it will process tax returns on schedule and without delays. While the agency will clarify its contingency plan in the coming days, organizations should proceed as planned with 1099 reporting and other seasonal filings. The IRS will recall a […]
The South Dakota v. Wayfair decision last June has created a lot of angst for indirect tax professionals and the businesses they work so hard to protect from the burdens of sales and use tax filing. Six months later as we begin the new year, that angst has not gotten any lighter. Any federal legislative […]
2018 was a volatile year in indirect tax compliance for tax, finance and IT professionals worldwide. With an increase in globalization and tax gaps surpassing tens of billions in some countries, it’s not surprising that one of the biggest challenges governments are addressing is revenue collection. Like enterprises, governments are creating new, technology-driven processes to […]