Ensuring Digital Signature Lawfulness for Invoice for Goods in Mexico

How to eSign a document: digital signature lawfulness for Invoice for Goods in Mexico

welcome in this presentation we will go over the new cfdi federal requirements for electronic invoicing in mexico as of january 1st 2022 there was a new electronic invoicing scheme the cfdi version 4.0 replaces version 3.3 which has been required since july 1st 2017. cfdi 4.0 will be mandatory as of january 1st 2023 in this presentation we will cover the following what is electronic invoicing in mexico what are the main changes sat requires in cfdi 4.0 what are the main operating changes required for cfdi 4.0 and how to use bios to issue digital tax receipts if your mexican subsidiary invoices more than 250 000 pesos per year it is required to generate electronic invoices taxpayers are required by sat the tax authority to obtain the folio fiscal uuid and the digital signature for each invoice through an authorized cfdi certification vendor also known as pac an electronic invoice in mexico is a digital tax receipt it is known as compromante fiscal digital or cfdi it must meet the standards defined by the mexican tax authority sat in an exo 20 of the resolution miscellaneous fiscal it can be generated transmitted and stored using electronic means and it can be printed if needed using the specifications of the sat an exo20 also establishes the legal and technical requirements that must be followed to generate cfdis or digital tax receipts there are several types of cfdis the invoice cfdi credit note the merchandise return notes the debit note the payment receipts cfdi which is used to report payments received associated to one or more invoices a shipment cfdi which is required to transport merchandise within mexico and the payroll receipt cfdi each cfdi is a file in xml format that contains a digital seal which confirms its origin and gives it validity an original text string that serves as a summary of the contents of the invoice a certificate number which is issued by the tax authority a document number that uniquely identifies it also known as uuid and the date and time when it was generated a printed cfdi must also include these five elements this is an example of the xml file of a cfdi this file must be stored for five years this is an example of the printed version of an electronic invoice which shows the invoice number date and time the uuid the original text string the digital seal and the certificate number the main changes sat requires in cfdi 4.0 are the following mandatory inclusion of the name zip code and tax regime of the issuer and the receiver incorporation of fields to identify export operations identification of whether the operations covered by the cfdi are subject to indirect taxes incorporation of new sections to report information regarding operations with the public as well of those that are made on behalf of third parties there are changes in the requirements for the cancellation of cfdis there are changes of the cfdi of we withholdings and payment information there is a new format for the payment receipt cfdi and there are new validation rules and new catalogs that sat provides in addition to the multiple changes that the set requires in the cfdi 4.0 formats there are changes that will impact your operation and you must begin to take the measures you consider pertinent to comply with these new set guidelines the main operating changes in cfdi 4.0 are you will need to provide additional customer information when you export merchandise you will need to provide additional information related to the exports payment receipts require additional information in order to issue credit notes and return notes you will need to make sure you keep the required evidence on hand there are new requirements in order to cancel cfdi and there are changes to issue global invoices for sales to the general public in order to issue a cfdi in 4.0 format you must make sure that the name rfc or tax id the zip code and the customer's tax regime are an exact match to sets records as they appear in the document constancia de datos fiscales when you are generating an invoice for export it will be necessary to indicate whether it is a definite or a temporary export you must use one of the three valid keys that sat provides in their new catalog zero one is not applicable 0-2 means it's a definite export and 0-3 means it's a temporary export when you receive a payment you must issue a payment receipt cfdi in which you specify the invoices that are being paid and the amount to be applied to each related document there are additional requirements to generate these payment receipts for each related document you must indicate if the payment of the related document is subject to tax or not you must specify the applicable taxes and tax retentions on the payment received and finally you must specify a summary of applicable taxes on the payment received expressed in the currency of the payment there are new requirements that must be met in order to issue a credit note or a return note or to cancel an invoice the set indicates that in order to issue an expense cfdi which is a credit note or a return note or to cancel an invoice it will be necessary for the taxpayer to obtain evidence and support of the operation better known as materiality a common practice mainly after the amount has been closed from an accounting point of view and it is necessary to cancel an electronic invoice from the month that has already been closed is to generate a credit note which seeks to counteract the fiscal effect of the invoice that seeks to be cancelled sat has manifested that this practice is not justified and should not be done in order to cancel an invoice it will be necessary for the taxpayer to obtain evidence and support of the operation you are only allowed to cancel cfdis in the fiscal year in which they were issued you must specify a reason for the cancellation the valid reasons are vouchers issued with errors and related documents vouchers issued with errors and no related documents the operation was not carried out or the transaction is related to a global invoice when cancelling a cfdi with option 1 the uuid of the related cfdi must be specified and the related cfdi must contain the uuid of the cfdi that has been cancelled for example before canceling cfdi a that is being replaced with cfdib cfdib must be generated indicating that it replaces cfdia there are changes to the global invoice for sales to the general public the global cfdi must be issued no later than 24 hours after the closing of the operations that comprise it there is a new field called curiosity that must be included to register the period to which the global receipt information corresponds the valid keys are daily weekly bi-weekly monthly or bi-monthly for each sales receipt that is registered in the global invoice the corresponding code must be registered to indicate whether the commercial operation is subject to tax or not we're now going to go over some of the frequently asked questions regarding electronic invoicing in mexico can an electronic invoice be printed yes it can a printed invoice is required by law to transport merchandise a printed electronic invoice contains a digital seal the certificate number issued by the tax authority and the original text string with these three elements an auditor can verify that the invoice has not been altered in any way the law requires that you send your customers the xml file corresponding to the invoice most companies will also require the invoice in pdf format there are five things to consider when talking about electronic invoicing in mexico first are the legal requirements how to generate electronic invoices the requirements for printing electronic invoices how to transmit these invoices and how to receive electronic invoices in order to issue electronic invoices in mexico your company must obtain the following from the tax authority a valid electronic signature known as field a certificate for a digital seal known as a csd which contains a private key file a certificate file and a password associated with the certificate in order to generate electronic invoices in mexico you must have an authorized cfdi certification vendor also known as pac assigned the folio and digital signature for each invoice the pack must assign the folio in the digital signature within 72 hours or less they generate the invoice in an xml file and they send it to sat you must store the invoice in electronic format for five years it is important to note that some customers may also require that the xml file include an addenda customized for the needs of that customer in addition to invoices in xml format customers may require a printed copy of the electronic invoice or a pdf file to transport merchandise in mexico you need a printed version of a cfdi known as cartaport you can send your electronic invoices to your customers via email or any other mechanism like a value-added network as2 etc it is important to note that you are required to validate the digital stamp of every invoice you receive you may also demand printed copies of the electronic invoices from your vendors in order to receive invoices electronically you will need to set up a mechanism so your vendors can send you the associated xml files you can do that via email or some other mechanism like a value-added network or as2 once you receive the xml file you will need to validate the digital stamp and you will need to import the invoice into your accounts payable system internet slab offers several solutions for electronic invoicing in mexico internet's lab has over 20 years experience offering our bios software over the internet we have been generating electronic invoices since 2006 our invoices are accepted by companies like walmart home depot electro drawing soriana commercial mexicana liverpool etc we offer several solutions for companies wishing to access a tool and consulting services that will help them meet this new fiscal requirement in mexico biocrp is an erp software that integrates the following modules point of sale sales and accounts receivable including electronic invoicing purchasing and accounts payable customer service inventory control production control and accounting the bios light service is a simplified version of our erp that includes electronic invoicing which allows you to generate print and transmit electronic invoices in a user-friendly way in ance to the mexican law accounts receivable which automatically generates a payment receipt cfdi when you receive payments from your customers accounts payable which allows you to receive and store cfdi from your vendors and an accounting module this service allows you to generate electronic invoices and then automatically imports the information on the invoices directly into the accounting module which can then be accessed easily from your headquarters bio cfd is our basic service and it's designed to provide electronic invoicing to companies that are using a software package that does not support electronic invoicing or companies that are not ready to migrate to a full-blown erp this software allows you to generate print and transmit electronic invoices in a user-friendly way in ance with the mexican law these are some of the features in bio cfd the system can be activated within 24 hours you can use it to easily generate and transmit electronic invoices you can administer your digital certificates your list of customers products and services you can use it to generate reports the system is supported by professionals with over 20 years of experience you can easily migrate to bios lite or to bios erp we hope you found this presentation informative for more information please contact us by phone or via email thank you