e-Invoicing Mexico

Current Sender Requirements (Changes to be released soon for June 2011):

• Request set of invoice serial numbers (folios) from the tax authority, SAT (Servicio de Administración Tributaria)
• Use the pre-defined invoice serial numbers (accounting system must support this process)
• Apply for a digital certificate
• SAT defined XML Invoice format must be used
• Provide monthly reports to the SAT (Servicio de Administración Tributaria)
• Archive invoices (XML format)

Current Invoice data fields requirements:

• Name, residence and tax registry number
• Folio number
• Issue place and date
• Customer tax registry number
• Quantity and type of merchandise or description of the service
• Merchandise unit value and total value and taxes
• Customs document date, number and place (if imported)
• Original chain used for generating the digital stamp
• Digital stamp
• Serial number of the digital stamp certificate

Expected Legislation Changes

1. Announcements expected in September 2011, waiting on formal SAT publication

• Crossgate is currently working with our local entity and attorneys and the SAT to prepare for the upcoming changes

Comparison of Current Mexico Legislation to other Invoicing Processes

1. Traditional Paper Invoice

• Paper document that closes a commercial transaction;
• Details the products and services provided, including costs, taxes, freight
• May also include coding used to assign costs within an organization
• Used by Government Tax Authorities for Value Added Tax compliance

2. Basic Electronic e-Invoice

• Electronic version of paper document, containing all of the same information
• Digitally signed by emitter to provide non-repudiation and authentication to receiver
• Validated by receiver to ensure the integrity of message remains in tact
• Electronic file is the legal invoice – paper visualizations for human comfort only

3. Mexico Enhanced e-Invoicing

• Batch oriented approval scheme using separate set of invoice numbers called Folio.
• Folios range registered with Mexican Tax Authority (SAT) in advance
• Summary report to document folios used/canceled each month
• Paper invoice still acceptable but only with required data values like original chain, legal legend, etc.
• Special “Addenda” section used for fully integrated interfaces to partners like Wal-Mart, Liverpool, etc.