E-Invoicing in Mexico

Implementation timeline

• January 1, 2022 - CFDI has been updated to version 4.0, which will co-exist with CFDI version 3.3 until March 2023.
• From April 1, 2023, the only applicable version is 4.0.

How integrity and authenticity may be ensured?

Each invoice must be signed with the supplier's CSD (certificate issued by the tax authorities) and then sent to the Authorized Certification Provider (PAC). The PAC is a Tax Administration Service authorized entity verifying the XML format. It also assigns the folio (UUID) and signs it with the key provided to the tax authority. PAC performs these processes known as "Timbrado" and returns the result to the supplier (or service provider).

The PAC also places a Digital Seal to authenticate the CFDI from its origin since the issuer and the receiver must have their respective Digital Seal Certificates (CSD) up to date. If the SAT suspends them for some reason (for ex., tax delinquency), then the tax receipt cannot be generated.

What is the required format of an e-Invoice?

Mandatory XML formats are specified by the Mexican tax authorities (‘SAT’), with several variations depending on their intended reporting use.

There are five main types of invoice formats:

• CFDI type "I" or "Income" for regular invoices, fee and lease receipts, etc.
• CFDI type "E" or "Expenditure" for credit notes etc.
• CFDI type "T" or "Transfer" for moving goods within the company with a necessity of legal possession validation
• CFDI type "N" or "Payroll" for payroll receipts and associated expenses.
• CFDI type "P" or "Payment" for payment receipts etc.