MEXICO E-INVOICING

Mexico has one of the oldest and most complex sets of electronic invoicing regulations in the world.

For more than a decade, Mexico has been a pioneer in electronic invoicing. The country’s clearance-model e-invoicing mandate is extremely comprehensive and therefore fraught with risk. 

Businesses simply cannot operate in Mexico without a complete e-invoicing system capable of integrating and automating all of the fiscal requirements (invoices, e-payments, COMEX, e-accounting) within their ERP systems.

Latest Changes

Complemento de leyendas supplements for virtual importation of product components (for example, tires on cars or sugar in soda) are now required for maquiladoras, or American-owned factories operating across the Mexican border.
The process for cancelling a CFDI, or e-invoice, changed in November 2018 and requires suppliers to submit cancelation request instead of credit notes to void a previously issued invoice/CFDI . In addition, it requires the buyer to accept or reject the request within 72 hours
The frequently used supplement of payment, which affects all transactions where a partial or complete payment is received after a CFDI is issued, took effect in September 2018.

Mandate Quick Facts

  • Clearance-model mandate requires government sign-off on each transaction in real time
  • Supplements, or complementos, with additional information about a transaction accompany e-invoices depending on the type of transaction
  • Electronic invoices must have a digital signature to authenticate the integrity of the invoice

Penalties

  • $300-$4,602 fine per missing or incorrect e-invoice
  • $15-$4,092 fine per invoice that does not match accounting records (eContabilidad)
  • Up to $200 fine for each transaction that should have been posted in the delinquent or inaccurate polizas
  • Increased risk of a direct audit by the Mexican tax authority (SAT) for compliance errors
  • Adjusted taxable income based on presumption of unreported income, resulting in interest, penalties and fines on the delinquent taxes owed – often 80% to 100% of the imposed tax deficiency
  • Potential for operational shutdowns

How Sovos Helps Companies Stay Compliant with Mexico E-invoicing

The Sovos e-invoicing compliance solution serves as a true one-stop-shop for managing all e-invoicing compliance obligations in Mexico and across the globe. Combining disparate local solutions in countries around the world is both costly and risky. The Sovos SAP Framework Solution is tailored to manage specific e-invoicing scenarios in Mexico as well as handling requirements in other countries around the world. It allows companies to invoice seamlessly within SAP and also monitors both AR, AP, and e-accounting compliance processes, end-to-end, all within SAP.

Automatic population of SAP tables

The Sovos e-invoicing solution for Mexico extracts and publishes data according to government mandates and maintains all data in SAP so that companies can manage information in one place and be prepared for audits.

Certified for Namespace and SAP with a path to S/4HANA

The Sovos embedded SAP solution enables AR and AP users to manage daily operations within SAP streamlining processes, maintaining SAP as the single source of truth.

70+ OEMs

Sovos e-invoicing compliance solutions integrate seamlessly with Ariba, Coupa and many other payment solutions.
Free Guide

Electronic Invoicing and Reporting Requirements in Mexico

For more details on the evolution and requirements of the mandate, download the guide on e-invoicing in Mexico.

Feature list

Easily configure the e-invoicing processes.

Sovos provides SAP expertise in countries around the world, eliminating the need for SAP customers to find and provide experts themselves.

E-invoicing compliance solutions tailored to market-specific requirements and scenarios.

The embedded SAP solution enables AR and AP users to manage daily operations within SAP streamlining processes, maintaining SAP as the single source of truth. Sovos provides global reach with in-house regulatory expertise for both pre-clearance and post-audit transactional invoicing. When tax authorities introduce new or modify existing mandates, Sovos keeps track so SAP customers stay compliant, enjoy peace of mind and avoid business disruptions.

Functionality embedded in more than 60 leading global EDI and P2P networks, including SAP Ariba.

Sovos eInvoicing compliance works directly inside the most popular and most complex EDI and P2P systems, eliminating the need to fund and maintain expensive integration projects.

Change management function monitors and maintains the e-invoicing system.

Not only do SAP customers save money by not having to build internal SAP data extraction and mapping logics within SAP for their e-invoicing processes, they also don’t have to incur the significant costs of monitoring and maintaining those systems.

Reserved, native SAP namespace.

Built directly into SAP with its own namespace, the Sovos e-invoicing compliance solution delivers the tools SAP customers need to manage, control and monitor e-invoicing compliance processes in real time.