Mexico Taxes: New Law Requires Digital Receipts

¿Tienes recibos electrónicos? If you’re doing business in Mexico, there are some new regulations that will affect the way you manage your invoices and receipts. In fact, any organization filling out a tax return in Mexico may be significantly impacted.

In January 2011, the Mexican Tax Authority (SAT) implemented legislation that requires all companies filing taxes in Mexico to supply digitized business invoices and receipts. Enforcement of that legislation will start in January 1, 2012.

The Comprobantes Fiscales Digitales (Fiscal Digital Receipt) requires all invoices and receipts in XML format. And a digital seal must be used to authenticate each document. The companies affected by this change are ones with expenditures over 2,000 pesos (approximately $160 USD). The SAT also expects these companies to keep digital receipts on file for 10 years in case of an audit.

By not adhering to the XML format, accounts payable departments cannot pay the expenses submitted. If vendors are not paid, it creates a backlog in accounts payable and could damage the company’s credit or impact the entire operation. And, because invoice and receipt images can end up in various locations (i.e. email system, on desktops, in ERP), it’s difficult to access them in the event of an audit. Even if these images are properly kept, there is the risk they could be lost or deleted.

So how can your business stay in compliance with the new regulations?

The good news is Concur’s travel and expense management solution can make your transition in this process easy and efficient. To meet Mexico’s new formatting requirement, Concur clients can upload and store XML files – complete with the digital seal – in a centralized database. We allow you to index your stored data for auditing purposes, and provide a simple way for your organization to process expenses in Mexico.

¡Qué fácil!

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