Mexico’s taxing authority, the Servicio de Administracion Tributaria (SAT), announced May 31, 2013 that all commercial invoice transactions sent by companies earning more than 250,000 Pesos (about $19,500) annually must be submitted to the authority in a standard electronic format – the new Comprobante Fiscal Digital por Internet (CFDI) format – for approval effective Jan. 1, 2014.
The mandate, which eliminates the legacy CFD process, is expected to affect an estimated 500,000 companies, many of them multinationals with operations in the United States and Europe. Although the change has been expected for some time, the short notice has created a rush to bring systems into compliance before the end of 2013.
“This is not a trivial project,” Invoiceware International cautions in a whitepaper outlining the changes. “The legislation and required business processes will affect your ability to ship, your ability to collect money from your customers, and your ability to legally file your taxes in Mexico.”
The new compliance mandates being instituted in Mexico will:
- Affect all outbound shipping by companies, as CFDI is a real-time process;
- Require accounts payables organizations or shared services to adjust to the flood of newly- created CFDI e-invoices from their suppliers;
- Requires accounts receivables to use CFDI;
- Affect companies with revenue of at least 250,000 Pesos, compared with the previous minimum of 4 Million Pesos.
“Multinatinals have no time to waste,” says Scott Lewin, CEO of Invoiceware International. “Review your financial processes in Mexico, and understand the effects on accounts receivable and accounts payable. Understand the technical requirements and how ERP will be affected in terms of implementation and delays. Then, meet with vendors to understand the options. We are encouraging organizations to have a team focused on implementing these new mandates before the end of June 2013.”