2017 Brings Changes for the Online Digital Tax Document in Mexico

Cambios CFDI 2017

Click here to download the infographic, which details all the changes taking place in 2017 for online digital tax documents.

Starting on January 1, 2017, the use of version 1.2 of the payroll complement will be optional.
Use of the new online digital tax document for payroll will be optional starting on January 1st. If a company is ready, Edicom recommends using the new version of the complement, starting on January 1st, since the tax administration requires companies to make the switch no later than April 1st. The reissuance of payroll documents from the first three months of 2017 will increase document traffic and volume. Version 1.2 of the payroll complement presents important changes, which will include:

  • Restructuring the complement by reassigning attributes in new elements (sender and receiver).
  • Incorporating new elements to satisfy exceptions that were not compatible with version 1.1 of the payroll complement such as subcontracting, unionizations, retirement, pensions, retirement assets, separation payments, subsidies, allowances, revenue actions, etc.
  • Generating 14 new categories extracted from the schema for simpler and quicker updates.
  • Modifying optional attributes to accommodate specific conditions in particular situations.
  • Definitions of the validation rules in the payroll complement that should verify the certified providers authorized to send digital documents before the digital tax stamp is generated.
  • Incorporating the validation rules in version 3.2 and 3.3 of the online digital tax document whenever this complement is included.

Click here for more information about the payroll complement.

March 1, 2017: Update of the foreign trade complement
The new update for the foreign trade complement of the online digital tax document will go into effect on March 1, 2017. It can be used simultaneously or alternatively with version 1.0. The update will include the following new features:

  • A node, which can be used for the definitive export operations of type A-1 goods, in cases during which the goods are not objects of alienation or ones that are but are free of charge.
  • An updated category for customs tariffs.
  • An update of product identifications in several tariff sections.
  • An incorporation of the addresses of the senders and receivers, which will apply in the future for version 3.3 of online digital tax documents.

Click here for more information about the foreign trade complement.

April 1, 2017: The use of version 1.2 of the payroll complement will be mandatory
All online digital tax documents for payroll will include version 1.2 of the complement. The objective is to improve the quality of data with new categories and validation to simplify tax compliance and improve tax control. Thanks to this new complement it won’t be necessary to issue declaration statements starting in 2018.

July 1, 2017: Receivers will be authorized to cancel online digital tax documents
The tax administration has defined in detail, the procedures for cancelling online digital tax documents. In particular, it has defined new rules for how the receiving company can cancel an online digital tax document that has been accepted as well as one that hasn’t been accepted.

See more details about cancelling online digital tax documents.

July 1, 2017: New version (3.3) of the online digital tax document CFDI
Version 3.3 of the online digital tax document will be issued with the objectives of guaranteeing a better experience while using the e-invoice and improving the quality of the information contained in it. The tax administration has prepared version 3.3 so that it can coexist with version 3.2 during the first half of the new year. Some changes will include:

  • Applying new validation rules to check data consistency and to avoid errors.
  • Employing the use of 23 categories, some of which are internationally accepted, to designate information in specific fields. This will improve the accuracy of the data.
  • Integrating existing information into the billing process so that some fields are pre-filled.

Learn more about the technical specifications of CFDI version 3.3.

July 1, 2017: A new payment receipt complement
Version 1.0 of the payment receipt complement must be incorporated into the online digital tax document issued to confirm the receipt of partial payments and for cases in which a payment is received for remuneration in a single installment. However, this will not cover the time the online digital tax document is issued even in the case of credit operations, which are fully paid on a date after the corresponding document was issued.

How to anticipate all of these changes and be ready to apply them?

All of these modifications are effortlessly analyzed and applied by Edicom’s e-invoicing platform solution so that clients can work efficiently without problems or disruptions. Users can issue electronic documents for all of their complements without making changes to their system.

Edicom is a provider that’s been authorized to send digital tax documents since 2010 and has been authorized to receive digital tax documents since 2015. This double certification is a guarantee for clients wanting to use a single provider to centralize their fiscal processes so they can increase efficiency and maximize advantages.

Learn how to successfully handle electronic invoicing by clicking here to download our white paper that explains the state of the electronic invoice in Latin America.

Click here to download the infographic, which details all the changes taking place in 2017 for online digital tax documents.

CFDI changes 2017: New CFDI version 3.3 and payment receipt complement

Cambios CFDI 2017: nueva versión 3.3 CFDI y complemento de recepción de pagos

On December 5, 2016, Mexico’s Tax Administration Service (SAT) brought forward the release of two technical specifications that will result in updates to the CFDI from 1 July 2017.

As we reported previously, these updates are designed to ensure a better experience of using e-invoicing and to remedy incidents that are detected over time with the application of this system.

On one hand, the announcement features the technical specifications of Annex 20 in its 3.3 version. This new version will coexist with the current version 3.2 simultaneously in the first half of 2017 to facilitate adaptation. This aim of this CFDI upgrade is to promote the quality of the information contained in the CFDI to enable more effective exploitation, opening the door to future simplifications of procedures or eliminating reports.

What are the changes in the new CFDI version 3.3?

The new version includes changes in structure, data format, data features and data pools/catalogues, as well as in validations and calculation rules. Specifically, we highlight the following changes:

  • New validation rules are applied to check the coherence of the data and prevent possible errors.
  • Twenty-three catalogues will be used to improve data accuracy, some of them internationally accepted. Through these, the information for certain fields will be designed.
  • The existing information will be integrated with the billing process, so that when submitting returns, some fields will be displayed prefilled.

How does the CFDI payment receipt complement work?

On the other hand, payment receipt complement version 1.0 must be included in the CFDI issued to confirm the receipt of payments in partial instalments and in those cases where the amount due is received in a single payment, but this is not covered when CFDI was issued, even in the case of credit transactions which are fully paid at a later date than that of issuance of the corresponding CFDI.

This version also comes into force on 1 July 2017, but management or accounting systems will need to be technologically adapted to link payments with their respective bills.

e-Invoicing improvements in Mexico

The SAT is constantly updating and changing its e-billing schema to improve data consistency and process automation and provide greater control of tax accounting.

The first update will arrive on January 1 2017 with the new version 1.2 of the payroll complement.

In addition, the SAT recently updated the CFDi foreign trade complement to version 1.1, which comes into force in March 2017.

All these modifications are analysed and applied by Edicom in its CFDI platform so that all our clients can work efficiently and these changes will be transparent to them.

Edicom is also an Authorized Certification Provider (PAC) since 2010 and as of 2015 is also a Digital Document Receipt Certification Provider (PCRDD). The double certification as PAC and PCRDD is a guarantee for customers, who can centralize all processes related with tax compliance in a single provider, thus boosting efficiency and maximizing the benefits.

The road to technological transformation in Mexico

Mexico-Digital

Mexico can currently pride itself on being one of the most advanced countries in digital control. The latest development is creation of the Digital Documents Receipt Certification Provider (PCRDD), which simplifies business management and tax administration for companies, acting as an “electronic window” that unifies procedures. However, to get here it was necessary to carry out a real paperless revolution over the past 12 years

It all began in 2004, when the Tax Administration Service rolled out the legal framework and operational regulation for Mexico’s version of the electronic invoice – the Digital Fiscal Receipt (CFD). The system gradually became increasingly important. However, this was just the starting point for the current e-invoicing setup.

It was in 2010 when, based on the CFD, the government created the e-invoice we know today as the CFDI (Digital Tax Receipt via Internet). From the outset, this new billing model required the services of an Authorized Certification Provider (PAC) to validate the document and submit it to the SAT. This is a more secure system with a greater degree of control than the previous setup and now allows taxpayers to outsource their management.

But the real turning point in Mexico’s technological transformation took place in 2011. That year, the SAT imposed mandatory use of CFDI for companies earning more than 4 million pesos. Meanwhile, the rest were able to keep on using traditional methods or the CFD.

Sometime later, in 2014, the obligation was progressively extended to all taxpayers with annual incomes above 250,000, along with electronic issuance of payroll receipts. Electronic billing in CFDi format quickly became widespread and the old CFD finally disappeared. Mexico went on to become, along with Brazil, a world leader in the use of this technology.

Beyond e-invoicing

The expansion of e-invoicing prompted the SAT to venture even further into the new paperless technologies in order to simplify tax compliance. Last year saw the rollout of electronic accountinv for individuals and corporations. Moreover, the tax withholdings document also became digital.

In addition, the recently created figure of the PCRDD continues along the path of digital evolution the country has followed for the last 10 years.  Today, EDICOM is the only Provider of Technology Services for tax purposes accredited and authorized to provide service under the aegis of the PCRDD.

With this new figure, the SAT delegates the receipt of digital documents, their semantic and syntactic validation, certification and declaration to simplify tax procedures.

For now, taxpayers with PCRDD can now submit the DPIVA electronically by a fully automated process. Nevertheless, the SAT plans to include new digital documents soon. A breakthrough that will serve to save time and economic costs for Mexican businesses.

Mexico Publishes Modifications to the Third Fiscal Miscellaneous Resolution for 2016

Llega la 3ª RMF para 2016: Novedad del complemento de pagos

Last July 13th, Mexico’s tax administration published modifications to the third miscellaneous fiscal resolution for 2016 along with its annexes on its website. The planned changes will become effective for taxpayers on August 15th ,although there are some exceptions. The supplement for payments will be mandatory 30 days after the tax administration has made it public.

Among all of the modifications, this new supplement is one of the most important and affects a large number of businesses and taxpayers. In the legislation, Mexico’s tax administration includes different situations for optional or mandatory use for payments made in relation to online digital invoices.

  • Operation of payments in installments. Once the supplement for payments becomes active, it will be mandatory for all operations paid in installments. Companies will have to issue an electronic invoice for the total value of a transaction at the time it’s made. Then it must issue an online digital invoice for each payment made. To do this, it will be necessary to use the supplement for payments and the total amount of the operation in pesos.
  •  One installment payments, including credit transactions. In this case, using the supplement for payments is optional. However, those wishing to use the supplement may do so when a taxpayer makes one installment payment and when the electronic invoice is issued.
  • Invoice protection. The supplement will limit the cancellation of electronic invoices since it’s evidence that the payment has been made fully or partially. If a correction is necessary, companies will have to issue a credit note that indicates the error. This way the new supplement will provide greater legal security to fiscal transactions, although this use is also optional.

 

What information will the supplement for payments contain?

The tax administration is currently working on the payment supplement, a process in which EDICOM, a company that provides certification services for online digital invoicing along with other groups in the sector, participated in. When it’s ready, the supplement will be published on the tax administration’s website. Although there may be some small modifications, the most foreseeable modifications is that online digital invoices will include the following fields:

  • Date of payment
  • Form of payment
  • Currency
  • Field type
  • Amount
  • Operation number
  • Payer’s name
  • Payer’s RFC account
  • Payer’s account
  • Beneficiary’s name
  • Beneficiary’s RFC account
  • Beneficiary’s account
  • Payment chain type
  • Payment certificate
  • Payment chain
  • Payment stamp
  • Related documents

 

What are the advantages?

The supplement for payments, which includes the third resolution of modifications, comes at a time during which the electronic invoice is making great strides in Mexico. The tax administration addressed update 3.3 of the online digital invoice, which will take effect in 2017, with the objective of correcting some of the errors that have been detected over the past few years and to simplify tax compliance for taxpayers.

These same objectives are being pursued with the creation of the supplement for payments made.  Its implementation will mean advantages in the administrative field for businesses. These are some of the advantages:

  • It will avoid false duplications of payments made by installments.
  • It will prevent excessive cancellation of invoices because some taxpayers have informed the tax administration that some suppliers nullified payment proofs without reporting the cause. This made deductions and tax credits impossible.
  • It will allow one to know whether or not an invoice has been paid. This way, it won’t be possible for clients who haven’t made payments to use the invoice to deduct expenses.
  • It will automate the process of capturing payments, which will minimize the time dedicated to this task while reducing human errors in the process.
  • It will accelerate management processes.

 

Other Foreseen Modifications

Beyond the incorporation of the payment supplement, the third resolution of modifications will cause other changes related to the electronic invoice. In particular, it will modify the requirements of the printed representation of digital online invoices as well as some obligations of certified providers authorized to send digital documents. To learn more about these changes in depth, consult the tax administration’s website.