SAT extends CFDI migration deadline for some taxpayers

The Omnibus Tax Ruling (RMF) for 2014 announces certain changes relating to the CFDI. The most notable is the three-month extension granted by the Tax Administration Service (SAT) to some taxpayers to allow them to switch over to the new electronic billing schema. All natural persons who did not earn over 500.000 pesos in tax year 2012 tax may continue with their current billing system until 1 April, after which the CFDI becomes mandatory. This measure, announced by the SAT, could benefit some 563,000 taxpayers.

Moreover, individuals will no longer need to have a digital seal certificate to issue electronic invoices, whether they do so through an Authorized Certification Provider (PAC) or register their income and expenses via the SAT portal. In other words, having the FIEL and RFC will suffice.

Along with this extension, there are also another two related with issuing payroll and salaries in CFDI format. On one hand, the RMF for 2014 states that both natural and legal persons with income in excess of 500.000 pesos will have the period until 1 April to issue the CFDIs corresponding to salaries and withholdings backdated to 1 January. However, this extension will only apply if they have presented their clarification statement on the SAT website.

On the other hand, the document explains that taxpayers contributing to the Fiscal Incorporation Regime (REPECOS) as of 12 January 2014 will not be obliged to issue CFDI until 31 March for salary and payroll remunerations.

The remaining taxpayers who do not meet the requirements are obliged to invoice by means of CFDI as of 1 January.

 

EDICOM, first ACP in Mexico

EDICOM is the first PAC in Mexico and the most comprehensive on the market. The company has NOM151 (electronic notary services), ISO and SOX certificates. Edicom also has a Service Level Agreement (SLA) guarantee that undertakes to provide 99,9% service availability.

To clear up any doubts or queries about CFDI, visit http://www.cfd-cfdi.mx/

 

Facturae to cut Public Administration debts to suppliers

La factura electrónica reduce la morosidad

 

On 23 October, Congress approved the law promoting electronic billing and the creation of a single Accounts Register for payments in the Public Sector, which comes into force as of next year, 2014. This drive towards a paperless Public Administration, along the lines of other similar European initiatives, will facilitate records management, promote environmental friendliness and minimize costs. But in addition to this, Facturae is also an excellent way to cut down on Public Sector late payments to suppliers.

As of next January 1, all Administrations will have an accounting record for invoices, whose managers will forward the information on invoices received to the Tax Authority. This will also allow better knowledge of payments pending, and therefore greater control of any possible delays that might occur.

In addition, the rollout of Facturae will bring to light outstanding debts incurred by the Administration with its suppliers. Hacienda will be able to take action both to block payment of bills to suppliers owing money to the Social Security or Tax Agency and speed up payments from the Administration. Should the Administration default on invoice payments and miss the deadline stipulated by the Delinquency Act (30 days maximum), Hacienda may extract the corresponding resources from the delinquent municipal regional authorities through the funding system and execute the payment due.

Citizens will also be able to monitor the Administration’s debtor status thanks to the Accounts Register of invoices. The Technical Secretary General of the Ministry of Finance, David Mellado, highlighted this a few weeks ago, stating that this measure would enable us to know “who pays in a timely and appropriate fashion and who does not”.

The long-awaited Facturae, the fruit of several initiatives in Congress to date , comes into force next year. From 1 January, the Administration will be ready to receive invoices in this format. Nevertheless, electronic invoicing will not become mandatory until 15 January, 2015.

SEPA: Keys to the single payment area

SEPA (single euro payments area)

 

Five years ago, the European Union (EU) launched the SEPA (Single Euro Payment Area) initiative so that private individuals and businesses from any country would be able to carry out their financial operations in the same conditions, regardless of their location. A new system that will allow, for example, international transfers with the same commissions to any country that is part of the project, in other words, the 28 EU member states plus Iceland, Liechtenstein, Norway, Switzerland and Monaco.

The deadline for migration to this new scheme runs out on February 1, 2014, although due to the changes involved, until last October only 6% of European businesses had adapted to the SEPA criteria, according to reports from the Central European Bank. We must bear in mind that this single payment area affects different company departments, such as systems, finance, sales or human resources. However, switching over to this standard is essential for companies to be able to engage in their usual billing and payment operations next year.

 

What changes are involved in the Single Euro Payment Area?

  • The bank account will now be identified by the IBAN (International Bank Account Number), instead of the CCC used up to now.
  • It will be necessary to use XML format (SEPA 20022 ISO) to exchange files with banks.
  • With a single account it will be possible to manage all payments and collections carried out with any country in the SEPA area.
  • Commissions for cross-border payments will be the same as for the equivalent domestic operations.
  • Companies will need authorization from their clients/customers (mandate) to issue invoices and charge the payments to their accounts. The mandate is the single code linking the debtor with the issuer of the debt.
  • Receipts paid by standing order will be replaced by SEPA direct debits, for which there are two different schemes:
  • Basic or CORE (for companies and private individuals), which function in a very similar way to current direct debit receipts.
  • B2B (for businesses and self-employed), which has much lower return periods than the current scheme (2 working days).

 

What are the advantages?

The main beneficiaries of the SEPA will be the multinational companies operating in different markets within the single payment area, although SMEs will also find advantages in this initiative, which makes their electronic processes more efficient and makes it easier to operate in the international scope if necessary.

We can summarize the benefits of the SEPA in these three points:

  • Lower costs associated with the standardization of processes and the difference in fees among the different banks in Europe.
  • Centralization of cross-border payments and collections, which means greater efficiency.
  • Fewer payment delays.

 

What is the EDICOM solution?

EDICOM has created a solution for businesses and individuals which fully automates the bank debit generation process, in line with the new XML SEPA schema required by the European Union.

This software takes the data from ERP or financial management system, applies a transformation process to the XML format and automatically certifies that the file contains the fields specified as mandatory. The file is then directly integrated with the internal management system for sending to the banks, with acceptance totally assured.

Further information on the EDICOM SEPA Platform.

3 tips to take advantage of the obligation to issue electronic payslips in Mexico

Studies carried out by EDICOM using in-depth interviews with a customer sample reveal that 87% of the cost entailed in managing a salary is invested in its delivery.

The issuing of electronic payslips in Mexico and their certification before the SAT in the same way as any other electronic invoice or CFDI is a new obligation that businesses must fulfil in 2014. But it is also an opportunity to improve their internal processes and reduce costs, if they know how to take advantage of the possibilities technology offers.

Here are three quick tips to help you benefit from the obligation to issue electronic payslips.

 

1

Send out your payroll in electronic format

Issuing a CFDI with the payroll complements guarantees compliance with current regulations. But why keep on printing out the document on paper for delivery to each worker? Take one more step and switch your entire model over to digital, with electronic payroll dispersion services.

2

Get your employees to sign their payslips electronically

In Mexico it is necessary for workers to sign their payslips. Why not get them to do so electronically? The digital signature replaces the handwritten, with identical legal value. Moreover, it is a safer and more efficient process than manual signature.

3

Safeguard your receipts electronically

Businesses are obliged to keep signed payslips as proof of the payments made. Implementing a fully electronic model lets you keep legal digital files, which take up no physical space and can be swiftly retrieved as required by third parties.

 

EDICOM “Nomina” Portal: Comprehensive electronic payroll management

“Nomina” Portal, the solution developed by EDICOM, enables businesses to overcome the inefficiencies associated with delivery, signature and storage of payroll receipts. A solution that provides services from a single platform, including:

  • CFDI issuing systems with the payroll complement.
  • Web platforms for delivery of encrypted salaries
  • Electronic document signature solutions for workers, who access their private web framework to check and sign the receipts.
  • Storage and safekeeping services for electronic receipts with guaranteed access and retrieval throughout the validity period.

Contact us to find out more about Payroll Portal and get maximum benefit from the obligation to issue Electronic Payroll Receipts.

Mexican and European authorities share e-billing experiences

La Amexipac y la EESPA hablan sobre factura electrónica

 

On 21 and 22 November in Brussels, Mexico’s Tax Administration Service (SAT) and the Mexican Association of Authorized Certification Providers (AMEXIPAC) came together with representatives of the European commission and executives from the European e-Invoice Service Providers’ Association (EESPA). The meeting of these organizations, of which EDICOM is an active member, was designed to initiate a bilateral relationship between the authorities of the Central American country and the European Union, so that the Mexican electronic invoicing model might serve as a basis for Brussels’ guidelines.

Attendees at the conference shared lessons learned and described new opportunities and challenges for the sector. Points discussed included the legal framework of operation, open issuing formats, the role of electronic signatures in the verification of digital transactions for tax purposes or the importance of electronic invoicing as a key feature in the international digital agenda.

Guillermo Valls Esponda, General Taxpayer Services Administrator from the SAT, highlighted the role of Authorized Certification Providers (PAC), supplying stamping services for digital invoices, in the spread of electronic billing in Mexico. We must bear in mind that only up to October 2013 the country generated more than 3000 billion electronic transactions. This figure should foreseeably rise next year, when the obligation to issue CFDI (Digital Tax Invoice via Internet) comes into force for all taxpayers billing more than 250,000 pesos.

European officials praised the solidity of the Mexican model, which allows users to cut economic costs, streamlines administrative processes and reduces the risk of fraud associated with paper and electronic transactions when the validation and certification tasks carried out by the PAC are not available.

So far, as the Commission members acknowledged, the closest thing to Mexican electronic invoicing in Europe is the Portuguese model. The country’s government recently created a figure authorized to provide these services and the measure has been a great success. (Find out more about the billing model in Portugal.)

During this first contact between representatives of both regions, some future agreements were reached with a view to defining a semantic interoperability standard, greater collaboration in operational testing for the exchange of international transactions and working together on the documentation of working methods in Europe and Latin America.

In addition, the European Commission agreed to take part in the First World Forum on Electronic Invoicing, to be held in Cancun next year to celebrate the 10th anniversary of electronic invoicing in Mexico.