CFDI touches down in Mexican airlines

CFDI Aerolineas

The electronic billing schema currently in force in Mexico (CDFI) has safely landed in the airline sector. And it does so by making it mandatory, as of 1 July, to issue electronic invoice receipts for the sale of airline tickets, as laid down in the Transitory Article Seven of the First Resolution of Modifications to the Omnibus Tax Resolution for 2014:

For the purposes of Articles 29 and 29-A of the CFF, and 18, section VIII and 90, paragraph six of the Income Tax Law, taxpayers providing domestic or international air transport services for passenger or goods shall issue the corresponding CFDI for income received for said services.

In addition, the law also states the obligation to deliver said document to taxpayers who request it, allowing a term of two business days from the moment payment of the transaction takes place:

For the purposes of Article 29, first and last paragraphs of CFF, taxpayers who provide air transport services for passengers or goods, when operating ticketing sales and guides using centralized systems for the monitoring, issuance or distribution of payment and services shared with other providers of the same services, shall fulfill the obligation to issue and deliver CFDI for these operations, within two working days as of the day immediately following the payment date of the transaction.

Download whole resolution.

In this legal context and with just a few weeks before the regulation comes into force, airlines are faced with the need to prepare their accounting and fiscal management systems for the issuance, submission to the SAT and online forwarding of the receipts to those passengers that request them.

 

100 % AUTOMATIC ISSUING WITH EDICOM TICKET PORTAL

To respond to this dual obligation faced by the airlines: to issue the CFDI and deliver the invoices to users, EDICOM has developed the “Airline CFDI Portal”, a technological solution that simplifies and automates CFDI issuing tasks.

With this solution, the airline offers its users an online portal with special security which the passenger can access to get their CFDI by a simple procedure that is 100% automatic and takes place in real-time:

  • The user accesses the portal and enters some personal and fiscal details.
  • The platform automatically generates the CFDI and EDICOM certifies the invoice, introducing the serial and folio number and declaring it to the SAT.
  • The client gets the bill in real time, and can download the receipt at the same time.
  • Invoices issued by the ticketing portal are integrated into the company’s accounting management system.

Some of the world’s major airlines, such as  Volaris, American Airlines, Delta, Iberia, KLM, Lufthansa or Air France, have rolled out the EDICOM CFDI Portal solution with a dual purpose: to comply with the regulations coming into force on July 1, 2014 and integrate the portal into their network of online services for customers and passengers.

Find out more about the EDICOM CFDI Portal.

 

SERVICE FOR TRAVEL AGENCIES

Travel agents will also be affected by the new laws, since in the course of their normal activities they deal with the purchase of large batches of air tickets.

As our CFDI issuing platform concentrates the main airline companies operating in the country, we have developed an “Airlines HUB” which automates all CFDI requests for tickets acquired daily by air travel agents and integrates them directly into the internal management system.

If you would like to know more about this service, please do not hesitate to contact our consultants.

 

Edicom takes part in GS1 Mexico Congress

EVENTO GS1 MÉXICO

The main technological tendencies applied to the retail sector will be highlighted on 13 and 14 May at the GS1 Mexico Congress. This annual rendezvous would not be complete without EDICOM, leader in the development of B2B technological solutions and provider to large-scale retailers such as Grupo Gigante, DIA, Toys R’Us or Cortefiel.

Every day, large-scale distributors have to deal with managing multiple business transactions, further complicated by heterogeneity in the profiles of suppliers and customers. In this sense, EDI (Electronic Data Interchange) has become a necessary tool to simplify these procedures and enhance productivity and efficiency. This is why the supply chain sector is one of the areas with widespread deployment of electronic data interchange platforms.

EDICOM has different solutions that help improve the management of business transactions such as orders, despatch advices, delivery notes, invoices, etc. At our booth, visitors can discover the easiest way to link up with their suppliers or how to integrate and automate data communications in the ERP through EDI.

In addition to EDI platforms, the retail sector has other technological proposals that help improve business and cut costs. Among them, we find our solutions to optimize electronic billing management. In this sense, EDICOM is one of the leading electronic invoicing service providers in Mexico and the first PAC authorized by the SAT. To maximize the use of electronic invoicing, compulsory for the vast majority of taxpayers since 1 April, our company has created several value-added services, such as the issuing of payroll slips or the Receipts Portal.

According to the organization, the GS1 Mexico Congress will play host to over 3000 visitors. Please do not hesitate to visit us during the Congress and ask for a first-hand demonstration of our software.

  • 13 and 14 May 2014
  • Banamex Center, Mexico City.
  • Av. Conscripto 311, Lomas de Sotelo, Miguel Hidalgo, 11200, Ciudad de México, Distrito Federal, México.

Interested parties can find further information and register at the event website: http://www.gs1mexico.org/congreso/.

Mexico leads the way in electronic billing

MÉXICO LIDER EN FACTURA ELECTRÓNICA EN TODO EL MUNDO

Mexico is the most advanced country in the world in terms of electronic invoicing rollout. Since its inception ten years ago, over 9,000 million transactions have taken place through this system. A leadership confirmed by the prestigious annual survey on E-Invoicing/E-Billing: International Market Overview & Forecast drawn up by Billentis consulting. According to this report, the Central American country showed the highest electronic invoicing growth rates in 2013.

This trend is set to continue throughout the rest of the year due to the current tax legislation which requires the majority of taxpayers to use CFDI (Digital Tax Receipt via Internet). In fact, the extension deadline set by the Internal Revenue Service to join this scheme ends on April 1.

The potential of electronic invoicing to improve fiscal control, keep costs down and speed up transactions has sparked overall growth of this payment system worldwide. In this regard, some countries in Asia and the Pacific, interested in the rollout model developed by the Mexican Administration, may implement similar measures in their respective regions.

The European Union, which until now had been more liberal in taking legal action on the issue, will also follow some of the Mexican model’s guidelines. In fact, in late 2013, representatives from SAT and the European Commission met with the ESSPA and AMEXIPAC to initiate a bilateral relationship and make headway in this area.

In recent years, Latin America has become one of the biggest promoters of e-invoicing. Further proof is that Brazil and Chile are also front-runners in rolling out this payment system. In addition, other countries such as Costa Rica, Ecuador, Guatemala and Uruguay will soon be taking up electronic billing.

To illustrate this historic evolution, EDICOM has drawn up an infographic summarizing the e-billing milestones that have taken place in Mexico over the past decade.

 descargar infografía 10 años de factura electrónica en México

Ten years of electronic billing in Mexico

descargar infografía 10 años de factura electrónica en México

This year marks the tenth anniversary of electronic invoicing in Mexico. On January 5, 2004, the Ministry of Finance and Public Credit, through the Official Gazette of the Federation, issued the first ever schema for the Digital Tax Receipt or CFD. Since then, approximately 9,000 million electronic billing transactions have taken place. This figure is set to grow in coming years as the CFDI becomes mandatory, making Mexico one of the most innovative countries in this area.

In fact, the rollout of electronic invoicing in the Central American country has aroused the curiosity of the European Union and is now an example to follow, as we reported here. And with the rollout of CFDI, transparency and savings for taxpayers have grown exponentially, through greater fiscal control and process optimization.

The implementation of electronic invoicing in Mexico is the result of a progressive tax adjustment over the past ten years. From the CFD’s debut, with figures for 2005 of only 139,509 transactions carried out by this method, to compulsory use of CFDI for most taxpayers and payroll receipts in 2014.

 

Electronic payroll management allows savings of up to 88% per document

EDICOM CFDI Nóminas

Payroll issuance and delivery of payroll entails expenses for Mexican companies of over 37 pesos on average. A considerable part of the cost (90%) goes on the tasks of printing, delivery and safekeeping of the receipt signed by the worker. These data are taken from a survey carried out by EDICOM in interviews with benchmark companies in the country with more than 400 employees.

The report also provides other significant data: workers spend around 20 minutes collecting and signing their paychecks, a period that may increase in companies with more employees, where long waiting lines form at the doors of the Human Resources Department. Moreover, it is estimated that 5% of the documents have to be repeated due to mistakes or going missing. These figures show up the operational inefficiencies involved in manual payroll management.

Furthermore, with the recent Tax Reforms, the organizational drawbacks faced by companies in Mexico are compounded by the technical difficulties, as it is now mandatory to issue payroll and salaries in CFDI format for submission to the SAT.

The solution to avoid this type of inconvenience is automation of the process by means of totally electronic management. This can give rise to a saving of up to 88% per document for Mexican companies, but also brings other associated benefits. With the rollout of an electronic solution such as EDICOM CFDI Payroll, there is no more waiting, manual errors or papers going missing, and all the legal requirements are met. The workers sign their paychecks from their workstations with a simple click.

You can find out more about the survey’s conclusions and the EDICOM CFDI Payroll solution here: