These new rules restructured the legal framework of invoicing regulations. They unify all the basic legal rules in the Federal Tax Code, and simplify them by eliminating some previously required content (such as the supplier’s name and tax domicile). It also comprehensively answers questions around the treatment of paper invoices (in a system where electronic invoicing is the default rule for the largest companies), the tax validity of statements generated by financial institutions, and simplified invoices (such as those issued in retail transactions). The approval of these rules was accompanied by changes to the General Tax Rules which provide the legal framework. Among these changes are specific new rules for non-residents in Mexico issuing service supply invoices documenting:
- a supply of services
- a delivery of goods
- a asset leased to a Mexican taxpayer.
These rules set the mandatory content these invoices must include to be regarded as valid for local tax purposes.
The most critical developments in invoicing obligations apply to electronic invoicing. The new rules promote the universal application of the new electronic invoicing system introduced in 2011, called Comprobante Fiscal por Internet (CFDI). This system has the following main characteristics:
- the use of a compulsory electronic format for generating and storing invoices
- the use of electronic certificates by taxpayers to generate electronic signatures and digital stamps attached to the e-invoices
- the intervention of a third-party services provider, pre-determined by the Mexican tax authorities, in an electronic pre-validation invoice process
- the obligation of the recipient of the invoices to verify the code obtained by a third-party service provider from the tax authorities, and to validate the electronic certificate generating the digital stamps.
This invoicing system is the general protocol applicable to Mexican taxpayers. Some other formats are still valid, such as:
- paper invoices including a watermarked security code
- statements generated by financial institutions
- other electronic formats permitted in exceptional cases by the tax authorities.
These developments impact how companies must manage their invoice systems. They oblige local taxpayers to confirm the accuracy of the invoice contents. The use of electronic invoicing and storage is an important topic, not only in Mexico but also across Latin America. Taxpayers should monitor the introduction of new obligations to ensure compliance.