Understanding Mexico’s Miscellaneous Fiscal Resolution for 2021 and its Modifications (Part I)

Ramón Frias
March 16, 2021

Mexico introduced changes to the Miscellaneous Fiscal Resolution (MFR) this year. The Miscellaneous Fiscal Resolution is a group of regulations issued by the Mexican tax administration (SAT). The regulations contain the official interpretations of the rules enacted for the application of the taxes, levies and related obligations applicable to taxpayers in Mexico.

The MFR is built upon the provisions of similar resolutions issued in previous years but integrating the interpretations of all the legal changes enacted for the new fiscal year. In this series of blogs, we will explain changes introduced by the 2021 version of the MFR. These include certain enacted modifications regarding the electronic invoicing mandate and related compliance obligations.

Miscellaneous Fiscal Resolution 2021 Changes

  • Simplified information on CFDI from certain taxpayers: Small taxpayers in the Regime of Fiscal Incorporation may continue issuing electronic invoices (CFDI) including in the attribute “Description” the period to which the transaction with public is carried out.
  • Extension of global CFDIs by fuel dealers: Taxpayers mandated to have volumetric controls for hydrocarbons and petroleum products may continue issuing daily, weekly or monthly global CFDIs for transactions carried out with the public until 31 December 2021 if they comply with the other conditions established by the SAT in the MFR.
  • Incorporation of the Carta Porte Supplement as part of CFDIs for Transfer: The requirement to include the Carta Porte supplement in the graphical representation of CFDIs for transfers will become effective 30 days after the SAT publishes the mentioned supplement in its portal. This document is required whenever goods are transported by air, road or water in Mexico.
  • Proof of Purchase for real estate property: Individuals that acquired real estate property during 2014 and formalised these transactions with a public notary by 31 December 2017 can request the issuance of the CFDI that proves the acquisition value if the notary public that originally formalised the sale did not incorporate that document that should have been issued by the seller.
  • Supplement of CFDI for Expenses made via third parties: The new obligations to identify expenses made via third parties, digital wallets (monederos electronicos) used in fuel purchases and delivery orders will be effective 30 days after publication in the corresponding portal.
  • Fiscal mailbox: The MFR has set the deadline to set up fiscal mailboxes managed by the SAT for small taxpayers and taxpayers whose revenues are derived from sales of goods and services via the internet, digital platforms and similar means. There are three deadlines assigned to taxpayers based on the six digits of their tax ID. This resolution also requires taxpayers that have only supplied a single means of contact to update their information by 30 April 2021. Finally, starting 1 January 2022 the fiscal mailbox may be used by other public entities to contact taxpayers. This means that the SAT is intending for the fiscal mailbox to become the official method for public agencies to notify individuals and entities of resolutions and other administrative documents.
  • Update of economic activities carried out by digital platforms: Taxpayers located in Mexico or abroad with a permanent establishment in Mexico that provide digital services to clients located in Mexico are now obligated to provide information about activities carried out in Mexico, once the forms are available. Required information includes: the economic activities carried out as a digital platform, the start date of services provided in Mexico, the name of the legal representative in the country and the official domicile.
  • Electronic accounting: Taxpayers in industries including agriculture, livestock, forestry and fisheries, that are currently waived from submitting electronic accounting and the DIOT, will be relieved from such obligation from 1 January 1 2021. The MFR also extends that benefit to periods before 2021 under certain circumstances.

We will further examine additional changes introduced by the 2021 Miscellaneous Fiscal Resolution in Mexico in our follow-up blog.

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Author

Ramón Frias

Ramon is a Tax Counsel on the Regulatory Analysis team at Sovos. He is licensed to practice law in the Dominican Republic and is a member of the Dominican Bar Association. He has a Certificate Degree from Harvard University as well as a J.D. from the Universidad Autonoma de Santo Domingo. Ramon has written a number of essays about tax administration and has won the first prize in the international essays contest sponsored by the Inter American Center of Tax Administrations (CIAT). Prior to joining Sovos, Ramon worked for more than 10 years in the Department of Revenue of the Dominican Republic where he served as Deputy Director. He is proficient in French and Spanish.
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