Make the CFD to CFDI shift ASAP to avoid jail time!

September 25, 2012  |  Electronic Invoicing, Latin America, Legal

No, you’re absolutely not misreading this article’s title. Jail time, people. Remember that Mexico’s Servicio de Administración Tributaria (SAT) considers non-compliance with the law a criminal offense. Also remember that e-invoicing is now mandatory in Mexico. The industry shows that less than 10% of invoices have been transitioned to CFDI. So you’d better get your transition from CFD to CFDI going. A few things to remember as you start to rush your evaluation.

Remember this!

  • A PAC (authorised certification provider) is not enough. PACs are authorised to sign on behalf of the government. However, for an SAP user, it is only 15% of the workload. The changes in the real-time processes require quite a bit of SAP configuration.
  • Don’t wait – you could be out of compliance. The CFDI process is a real-time process for outbound invoices. Meaning, much like Brazil, that the invoice must be approved prior to shipping your goods.
  • Yes, Inbound Validation is mandatory. The SAT states very clearly for CFDI that if you are deducting your taxes (i.e. paying your taxes on the net and subtracting the taxes you pay your suppliers from what you charge your customers) then you must validate the inbound invoice.

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