Mexico e-invoicing and live reporting- CFDI

Mexico mandated the use of e-invoices and live reporting to the tax authorities in 2011 for large taxpayers. It was extended to all businesses in 2014. Previously, invoice issuance was paper, but controlled on government-licensed printers.

The process is designed around the Comprobante Fiscal Digital por Internet (CFDI) electronic invoice, made up of an XML file and a PDF readable version. This is digitally certified by the Mexican Servicio de Administracion Trinutaria, SAT.

Process to generate approved CFDI e-invoices

Set-up:

Taxpayers must register with SAT for a Federal Taxpayer Registration
They should also obtain a unique electronic signature key (FIEL) and Certificado de Sello Digital (CSD) digital stamp from SAT
Appoint a government-approved e-invoicing company (PAC) to validate and stamp invoices as they are issued. The PAC also provides secure storage and retrievable for invoices

CFDI invoice issuance:

The vendor produces an e-invoice with the customer and taxable service details. This must have a unique vendor invoice number
It then electronically transmit this to the PAC, which validates, and returns with the vendor's CSD stamp
The PAC simultaneously sends the stamped CFDI to the SAT
The vendor's accounting system will then produce the PDF version of the invoice
The XML version of a CFDI must include the issuer's FIEL
To cancel a CFDI, a request by the vendor must be submitted via the PAC. A credit will not be permitted. The customer must then approve or reject the request within seventy-two hours.

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