Post by del ToroSosa on Jan 6, 2009 22:52:53 GMT 4
Electronic invoicing in Mexico
Mexico is mainly a form over substance jurisdiction. Pursuant to the Mexican tax regulations, domestic entities must issue official invoices, meeting several formal requirements, to document their transactions. To the extent the counterparty obtains an official invoice, and meets other applicable requirements, it gets the right to deduct the involved purchases and expenses.
Among other requirements, the official invoices should include: the name, tax address and tax ID of the issuer, date and place of issuance, name and tax ID of the recipient, quantity and type of goods or description of the services, unit price, total price, applicable indirect taxes.
Generally, official invoices are pre-printed by licensed printers, but some taxpayers have authorisation to be self-printers. In this regard, with the aim of streamlining and simplifying formalities, the Mexican tax authorities are pursuing the migration to e-invoices following a worldwide trend.
It is expected that in the near future, there will not longer be self-printers, so it will be optional to continue issuing pre-printed invoices, or to adhere to the new electronic invoicing system so long the taxpayer in question keeps the proper electronic accounting records, has an electronic signature issued by the tax authorities and obtains the corresponding authorisation. Monthly reporting is required for taxpayers who get this electronic invoicing authorisation.
For a Mexican entity to be authorised to issue electronic invoices it must obtain digital stamps and a series of control numbers backed by the tax authorities as well as prove that its technology (such as system security and information flow) is sufficient to issue this e-invoices.
It is important to mention that both electronic and pre-printed invoices have the same effects for tax purposes, but electronic invoices have better security features than traditional pre-printed invoices. Also, e-invoices reduce costs of issuance and storage of documentation which may help improve business management.
Roberto del Toro (roberto.del.toro@mx.pwc.com) & Araceli Sosa (araceli.sosa.cortes@mx.pwc.com), PricewaterhouseCoopers, Mexico City
Mexico is mainly a form over substance jurisdiction. Pursuant to the Mexican tax regulations, domestic entities must issue official invoices, meeting several formal requirements, to document their transactions. To the extent the counterparty obtains an official invoice, and meets other applicable requirements, it gets the right to deduct the involved purchases and expenses.
Among other requirements, the official invoices should include: the name, tax address and tax ID of the issuer, date and place of issuance, name and tax ID of the recipient, quantity and type of goods or description of the services, unit price, total price, applicable indirect taxes.
Generally, official invoices are pre-printed by licensed printers, but some taxpayers have authorisation to be self-printers. In this regard, with the aim of streamlining and simplifying formalities, the Mexican tax authorities are pursuing the migration to e-invoices following a worldwide trend.
It is expected that in the near future, there will not longer be self-printers, so it will be optional to continue issuing pre-printed invoices, or to adhere to the new electronic invoicing system so long the taxpayer in question keeps the proper electronic accounting records, has an electronic signature issued by the tax authorities and obtains the corresponding authorisation. Monthly reporting is required for taxpayers who get this electronic invoicing authorisation.
For a Mexican entity to be authorised to issue electronic invoices it must obtain digital stamps and a series of control numbers backed by the tax authorities as well as prove that its technology (such as system security and information flow) is sufficient to issue this e-invoices.
It is important to mention that both electronic and pre-printed invoices have the same effects for tax purposes, but electronic invoices have better security features than traditional pre-printed invoices. Also, e-invoices reduce costs of issuance and storage of documentation which may help improve business management.
Roberto del Toro (roberto.del.toro@mx.pwc.com) & Araceli Sosa (araceli.sosa.cortes@mx.pwc.com), PricewaterhouseCoopers, Mexico City