, ,

Extension of Mexican E-invoicing Mandate Puts New Pressure on Maquiladoras

Andrés Camacho
September 27, 2019

A new wrinkle in Mexican electronic invoicing adds complexity to the e-invoicing process for maquiladoras, or foreign-owned factories operating along the US-Mexico border. 

Compared to some other countries in Latin America, Mexico has kept its core electronic invoice, the CFDI, relatively simple. Whereas an invoice in Chile has 250 fields or more of required information, the CFDI only has about 50. But that doesn’t mean Mexican e-invoicing isn’t complex. 

Supplements in Mexican e-invoicing 

Mexico pursued a different approach, requiring supplements, or complementos, to invoices for different business and transaction types. Complementos are add-ons to the core CFDI that contain specific information about the nature of a transaction. For instance, there is a complemento for reception of payments (complemento de pagos) and another for companies operating in the oil and gas industry.

Another type of complemento, the complemento de leyendas, has found its way to maquiladoras. It concerns transactions involving virtual importation–essentially components of larger products. For instance, an automaker makes cars in Mexico. Those cars have tires. The automaker pays VAT on the purchase of tires from a supplier, but when the tires leave the factory, they are part of a car and no longer taxed separately. The same idea works for, say, sugar in soda. Those transactions require a complemento de leyendas to accompany the core CFDI. 

Complemento de Leyendas extended to maquiladoras 

The SAT, the Mexican tax administration, recently extended the complemento de leyendas requirement to maquiladoras, meaning the border factories will now have to file supplements for transactions involving all sorts of components of their finished products. The new requirement adds complexity to an e-invoicing process that is already one of the most complicated and difficult to manage in the world.

In order to maximize efficiency and reduce risk, companies classified as maquiladoras (IMMEX) need to be able to automate the process of extracting information for the CFDI and the complemento and publishing it according to government requirements. They also need to have invoice information automatically available in SAP, with a function that will automatically populate SAP tables for each invoice submitted or received. 

It’s also important for maquiladora operators to be able to keep up with the constant changes in Mexican e-invoicing mandates given the ultimately futility of trying to track and incorporate them into systems in-house. As the new maquiladora mandate demonstrates, e-invoicing in Mexico is only going to continue to become more complex.

Take Action

Sovos has more than a decade of experience helping maquiladora operators navigate Mexican e-invoicing mandates

Sign up for Email Updates

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


Andrés Camacho

Andrés Camacho es Strategy Program Manager en Sovos. En su cargo, Andrés es el responsable de conocer cada mercado donde Sovos tiene clientes, específicamente en Latinoamérica y Europa, y de desarrollar la estrategia para la producción de soluciones de cumplimiento. Andrés se unió a Sovos cuando en 2016 la compañía adquirió Invoiceware International. En esta última se desempeñaba como Product Manager y estaba a cargo de gestionar el desarrollo de los productos de facturación electrónica de la compañía.
Share This Post

North America Tax Information Reporting
June 7, 2023
4 Ways to Elevate Your Direct State Reporting Process

Direct state reporting obligations have gotten increasingly difficult for some businesses over the past few years. With more states requiring direct reporting of form series 1099, more companies are subject to penalties if they do not comply with those obligations. As state reporting evolves, ensuring your process is efficient is critical. Strengthening your reporting process […]

EMEA VAT & Fiscal Reporting
June 7, 2023
The Value of SAP S/4HANA Add-On Software Certification

Many companies utilise SAP for their tax processes, but limitations in native software functionality add a layer of complexity. Custom coding is often required for businesses to achieve their desired results, producing the need for ongoing customisation and optimisation – this creates a hefty burden for companies, in addition to their tax compliance obligations. SAP-certified […]

North America Sales & Use Tax
June 5, 2023
Sovos Onboarding: 6 Departments Dedicated to Customer Success

If you are evaluating Sovos, we want you to understand expectations for the customer experience and what teams are there to support you. At Sovos, we have a range of teams ready to support you from the day you sign a contract. Whether it be a customer success representative to review the value you are […]

North America Sales & Use Tax
June 1, 2023
3 Things to Remember if You Get a Sales Tax Notice

Have you ever received a sales tax notice from a state department of revenue? Whether you answered yes or no, there are important things to keep top of mind to help keep your business prepared. Finding out that you have failed to comply with one or more of your sales tax obligations can be startling. […]

EMEA VAT & Fiscal Reporting
May 31, 2023
Bizkaia: What is Batuz LROE?

The Ledger of Economic Operations (Libro Registro de Operaciones Económicas), also known as LROE, is a main compliance element of the Batuz tax control system. This system is under implementation in the province of Bizkaia, located in the autonomous Basque community in Spain. Taxpayers under the Batuz mandate must comply with both TicketBAI and LROE […]