Page 1

Deloitte.

Instituto Mexicano de C ontadores Públicos

O AMEXIPAC*

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ELECTRONIC MEDIA IN FISCAL MATTERS PAPER LESS

E L E C T R O N IC IN V O IC E

Deloitte.

Instituto Mexicano de Contadores Publicos

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i ^ AMEXIPAC*

S/IT S e r v ic io d e A d a im s lf a c io n T r ib u la r ii SeCfiOMkO£ KIHjCO


D.R. © 2014 por el Instituto Mexicano de Contadores Publicos, A.C. Bosque de Tabachines 44 Fracc. Bosques de las Lomas 11700 Ciudad de Mexico, D.F. www.imcp.org.mx

Electronic media in fiscal matters Paper less Francisco Javier Macias Valadez Trevino

In s titu to M exican o d e C o n ta d o r e s P u b lico s

Gerencia Coordinacion editorial Coordinacion de la obra Diagramacion y formacion Traduccion Portada Imagenes Impresion Patrocinadores

Norma Araceli Bautista Gutierrez Juana Trejo Caballero Arturo Morales Armenta Gabriela Salcedo Martinez Ma. Pilar Soberon Santisteban Itzel Resendiz Silva Shutterstock® Images Deloitte Deloitte y Amexipac

Todos los derechos reservados/All rights reserved Ninguna parte de este libro debe ser reproducida por ningun medio, incluido el fotocopiado, sin permiso por escrito del editor o de su autor/ No reproduction should be made without autor permissions. Impreso en Mexico / Printed in Mexico

This document is an excerpt from the book Medios electronicos en materia fiscal. La eliminacion del papel, 6^ Edition (Mexico, May-2014) Published for the Instituto Mexicano de Contadores Publicos (IMCP).

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Deloitte.

Instituto Mexicano de Contadores Publicos

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AMEXIPAC’

SAT


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CHAPTER 1 Consolidating electronic invoicing in IVIexIco: AMEXIPAC 1.1

About A M EXIPAC.................................................................................................................... 11

1.2

PAC: W orldwide Leading Figure............................................................................................ 12

1.3

CFDI rule for issuance version 3.2........................................................................................ 13

CHAPTER 2 E-commerce In the Mexican law 2.1

Commercial Code..................................................................................................................... 19 2.1.1

2.2

Obligations in electronic m ed ia.............................................................................. 19 2.1.1.1

IT reforms................................................................................................. 19

2.1.1.2

Reforms data m essages........................................................................ 21

Accounting in electronic information system s.................................................................... 23 2.2.1

Obligation to keep accounting................................................................................ 23

2.2.2

Types of tax invoices................................................................................................. 23

CH APTE RS Electronic media for the issuance of digital invoices 3.1

Mexico le ad er........................................................................................................................... 27 3.1.1

Definition.................................................................................................................... 27

3.1.2

Benefits from their u se............................................................................................. 28

3 .1 .3

Option of issue........................................................................................................... 28

3.1.4

Requirements for issuing......................................................................................... 28

3 .1 .5

Tax secrecy on C F D ................................................................................................... 31


3.1.6

Tax evasion c rim e ....................................................................................................... 31

3.1.7

Taxpayers registered at R F C ..................................................................................... 32

3.1.8

Publication of unreliable taxpayers........................................................................ 32

3.1.9

Tax M ailbox.................................................................................................................. 32 3.1.9.1

Benefits...................................................................................................... 33

3.1.9.2

Issuance of electronic invoices from cell phones applicable to in d ivid u als........................................................ 33

3.1.10 Relevant aspects of the tax reform 2014............................................................... 34 3.1.10.1 CFDI obligation issued by deductions.................................................. 34 3.1.10.2 Deadline for delivering the CFDI to the acquirer............................... 34 3.1.10.3 Refunds, discounts, and rebates........................................................... 34 3.1.10.4 Paym ent..................................................................................................... 34 3.1.10.5

One single paym ent................................................................................. 34

3.1.10.6 Installm ents.............................................................................................. 35 3.1.10.7 Cases In which CFDI are not deductible............................................... 35 3.1.10.8

Payroll Deduction..................................................................................... 35

3.1.10.9

Online A cco un ting................................................................................... 36

3.1.10.10 New Regime of Incorporation (R IF )..................................................... 36 3.1.10.11 My A cco un ts............................................................................................. 37 3.1.11 Fiscal Miscellaneous Resolution 2 0 1 4 .................................................................... 37 3.1.11.1

CFDI storage.............................................................................................. 37

3.1.11.2

Expedition through the Electronic Invoice Generation Service (CFDI) offered by the SAT................................... 38

3.1.11.3

Add-ins to incorporate tax information at the CFDI......................... 38

3.1.11.4

Generic Key in the RFC in CFDI and residents abroad...................... 38

3.1.11.5

Option to issue CFDI without mentioning the data of the custom s declaration.......................................................... 38

3.1.11.6

Service card definition............................................................................ 38

3.1.11.7

Expenditures payment on behalf of third parties............................. 38

3.1.11.8

Issuance of invoices from transactions with the general public.... 39

3.1.11.9

Options for CFDI Issuance...................................................................... 39

3.1.11.10 Option for payroll CFDI Issu an ce .......................................................... 39 3.1.11.11 Tax registration system .......................................................................... 39


3.1.11.12 Airplane tickets. A irlin e s...................................................................... 39 3.1.11.12.1

Payment of contributions and expenditures in passenger and freight air transportation.............................................. 39

3.1.11.12.2 CFDI issuance for passenger and freight air transportation se rv ice s.......................40 3.1.11.12.3

Deferral invoice issuance for airtransport services..................................................... 40

3.1.12 XM L Form at................................................................................................................. 40 3.1.13 The addenda................................................................................................................ 41 3.1.14 Companies that began............................................................................................... 45 3.1.15 The electronic invoice in the w o rld ........................................................................ 46

CHAPTER 4 Comments Provisions from 2014......................................................................................................................... 52

C H APTE RS Conclusions and Recommendations............................................................................................... 55

A C K N O W L E D G M E N T S ......................................................................................... 63


Currículum

FRANCISCO JAVIER CÍAS VALADEZ TREVIÑO Contador Público Certificado Profesionista Certificado en Fiscal Licenciado en Comercio Internacional

Certified Public Accountant (C.P.C.), from Universidad La Salle (1968-1972), incorporated to Universidad Nacional Autónoma de México, and Altorney in International Afairs of the Instituto Politécnico NacionaTs Escuela Superior de Comercio {1988-1992). International Commerce Diploma in Universidad Anáhuac (1985-1988). Studied aboard in Hawai University (1975), Boston University (1982) and Columbia University, N.Y. Former President of the Instituto Mexicano de Contadores Públicos Board (2010-2011). Former President of the Academia de Estudios Fiscales de la Contaduría Pública, A.C. (2001-2003). Writter of: The Proposal of Estímulos al turismo (2004). Published for the Academia de Estudios Fiscales de la Contaduría Pública, A.C. Writter of: El costo de ventas. Principales implicaciones contables, fiscales y legales (2005). Solución Integral para la Administración Tributaria (Plataforma Tecnológica) (2005). Published for the Colegio de Contadores Públicos de México, A.C. Writter of: Declaraciones y Pagos (2010). Pago Referenciado (DyP) (2014). Medios electrónicos en materia fiscal. La eliminación del papel (2008 a 2014). Published for the IMCP. Former President of the Instituto Mexicano de Ejecutivos en Finanzas. National Cometee of Taxes, Afairs and Treasure. Writter of: Measure ofActívity (Transfer Pricing). Published for the Instituto Mexicano de Ejecutivos en Finanzas. Deloitte Partner in Tax, Legal, International Commerce, Transfer Pricing and Advisory for more than 42 years (1970-2012). Deloitte Partner Retaired and Active.


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Mexico, D. R, March 2014. C. P. C. Francisco Javier Macias Valadez Trevino Mexican Institute of Public Accountants Dear Francisco: Historically, technology has been evolving to large steps, and it's amazing how its implementation brings great benefits; this situation is not strange to us, responsible for implementing the tax provisions. At present, information technologies are an indispensable ally to the Tax Administration in Mexico, due to the fact that a primary objective of the SAT is to make easier for the taxpayers to fulfill their tax obligations. The impact of the use of electronic means for this task has involved break paradigms evolve, migrate to­ ward new ways of operating. It is true, it has been a gradual process, but instead the benefits have been realized as greater competitiveness, generating savings, reduced costs, and most profitable Investments and also contribute to the care of the environment. In this sense, the electronic invoice represents the next step in the evolution of the tax verification, be­ cause In the SAT we decided to make the technology our ally to be more productive and thus generate more and better options to taxpayers. Today, Mexico is a leader in the management of digital proof and the Mexican model is recognized worldwide. Since its implementation as optional for the taxpayers, until mandatory since this year, the electronic in­ voice Is a schema that has not ceased to evolve and is taken up increasingly by the taxpayers, who have found their virtues. This work is therefore, a must-read In the history of success as gamble on the implementation of technol­ ogy for the benefit of taxpayers, making easier to fulfill their tax obligations. Congratulations. Sincerely,

Arist6tet^1y(^z^an£he_z J Head of the Tax Administration S ^ ic e


Knowledge sharing is an act of generosity. It realizes this fifth edition of the book Electronic media in fiscal matters. The elimination of the paper, work done by Francisco Macias Valadez in which capture how the use of electronic media represents an important way to simplify and reduce the administrative burdens for the fulfillment of tax obligations. In each of the editions of this book, Francisco has endeavored to investigate and incorporate relevant information and concepts that enrich the knowledge about electronic invoice, and the benefits that their use and exploitation represents for all stakeholders: taxpayers, both individuals and corporations in the public, private and social sector and, of course, to the taxing authority. According to the United Nations Organization (UN), the incorporation of an electronic billing system gives the countries a number of benefits: it reduces the tax evasion and corruption, increasing transparency, strengthens the corporate governance, increases the visibility and transparency of transactions and im足 proves the economy in general, among others. The UN also notes that the electronic invoicing is not only beneficial for the companies that incorporate, but their adoption has positive effects on various aspects of the economy, as the administrative and busi足 ness processes become more efficient, optimizing the management of business and, also, contributes to the care of the environment with significant savings in paper usage and reduction of costs of storage and files. In a world where Social Responsibility takes increasing importance, incorporating an electronic billing system has a huge Impact, especially In regard to environmental responsibility. Moving from traditional invoice to electronic invoice, not only saves large amounts of money by reducing consumption of paper, but it has a direct impact on the conservation of forests, water power savings and energy savings. The Tax Administration Service itself exemplified as follows: 60 trees are cut down per million invoices; In Mexico, the electronic invoice could prevent the logging of up to 240.000 trees. The only fact is contributing to the environmental cause, is a stimulus for organizations wishing to incor足 porate this type of billing, since the practice of social responsibility helps improve your corporate image to the environment, being innovative and modern, and delivering additional value to the efficiency that it brings with it the electronic invoicing. I congratulate Francisco and encouraged him to continue with this research work, sharing knowledge on relevant topics that promote a culture of contribution that requires clarity, transparency, utility and a lot of effort by collectors, taxpayers, as well as those seeking to promote and provide certainty to the model of electronic invoicing.

C.P.C. Frarfclsco Perez u i General Manager Gaiaz Yamazaki Ruiz Urquiza, S.C.


Dear reader, It is a pleasure for the Mexican Association of Licensed Providers of Certification, AMEXIPAC, A. C., to con­ tribute to promote the book " Electronic media in fiscal matters: the elimination o f paper", autliorship of the C. P. Francisco Macias Valadez Trevino. Through this publication the Mexican Institute of Public Accountants offers to readers a reference point on the application of electronic media in the taxation in Mexico. Is not only a comprehensive reflection of the regulatory landscape that is in the scene in that matter, but Francisco allows us to recognize the evolution that has taken the use of digital tools for control in the country. The Mexican Associafon of Licensed Providers of Certification, AMEXIPAC, A. C., is a non-profit organiza­ tion founded in 2012 which purpose is to ensure representation of the authorized providers of certifica­ tion, PAC. Its main objectives are to encourage best practices in the industry and contribute to spread the benefits of the use of electronic media in Mexico. May I include a quote from forums where the Amexipac has been present: "The modern entrepreneur capitalizes on technological changes in benefit of their business processes; enjoygratersecurity in their deductions; encourages the government to reduce the administrative burden through timely compliance, as the returns are already automate, and joins the automation effort with customers and suppliers. That isto say, accept the change and transform it into an opportunity. The passive administrator objects to the change, delays or ignores it, leaving gaps and opportunities to Its competition. In summary, the visionary identifies the opportunity and takes advantage from it; the passive administra­ tor only has bad excuses for their failures."' "Electronic media in fiscal matters: the elimination of paper", it is also a reference source on the success of joint participation of public and private sector, to expand the use of technologies in Mexico, which high­ light the example of PAC In the electronic invoice theme. Reaffirming our commitment to leadership and impetus to the industry, AMEXIPAC is proud to collaborate with the Mexican Institute of Public Accountants, A. C., to publicize the publication of this work. We wish that will be of great benefit to the reader.

Lie. Jawiei>A/eg^^Tiowers Chairman of the B o a ra o f Directors Mexican Association o f Licensed Providers of Certification


Chapter 1


/

Consolidating electronic invoicing in Mexico: AMEXIPAC The Electronic Invoice as already mentioned has been an essential link for the digital evolution of the public and private sector o f our country over the last decade. As of May 31 2004 with the publication of the Appendix 20 of the relevant Miscellaneous Tax Resolution, began the use of digital tax invoice in Mexico, with a technological standard defined by the tax authority. With the arrival of the Digital Tax Document {Electronic Invoice) immediate benefits for users, such as automation of administrative processes, optimization of business cycles and reducing issuance costs, shipping and storage of printed documents were obtained. From the beginning and during these nearly 10 years of evolution of the electronic invoice the current authorized suppliers of Digital Tax Invoices through Internet, PAC, have worked closely with regulatory authorities to submit proposals and solutions that optimize and get closer to the end user the easiest, safer and efficient way to manage their tax invoices. The emergence of the figure PAC is now a reality that benefits more than one million taxpayers and led, by the representation, that requires this specialization, the conformation of the Mexican Association of Licensed Providers of Certification, AMEXIPAC, A. C.

1.1 About AMEXIPAC AMEXIPAC is a non-profit organization founded in 2012 which purpose is to ensure representa足 tion of the PAC in order to promote best practices in the industry. AMEXIPAC was born as an initiative to enable a formal channel of communication with the reg足 ulatory authorities of the electronic invoice in Mexico and contribute as a strategic ally in the expansion and success of the use of the tax verification through electronic means.


Beyond being trusted third-party for the certification of the digital tax invoices, its Partners con­ centrated their more robust offer of value-added services and solutions to several basic, inter­ mediate and advanced end-users, ranging from individuals, all the way to SM E and corporate business. AMEXIPAC is committed to be an agent of momentum, quality and promotion of the use of elec­ tronic media in Mexico and today represents more than 70% of the electronic invoices processed in Mexico. Among its goals are the follov^/ing: •

Represent the authorized service providers of electronic invoicing in Mexico ("PAC") before the public and private sector.

Achieve cooperation among PAC companies to look for best practices and standards of qual­ ity in the provision of their services.

Encourage and promote the use of electronic/digital media in collaboration between com ­ panies and individuals as well as between them and government agencies, on the basis of the use of electronic signatures and digital tax invoices.

Through the Code of Ethics and Best Practices of the Association, its members observed the fol­ lowing principles: «

Legitimate Competition. Excellence in Service. Valuable contribution to the Industry.

1.2 PAC: Leading the Service Provider IVIodels Worldwide PAC service providers is a figure designed by the Tax Administration Service, SAT, to serve as aux­ iliary for the tax authority in the certification of digital tax invoices via internet. To become a PAC service provider interested entities are required to comply with an exhaustive technical and legal audit, to ensure the operational safety and infrastructure of the company. A PAC service provider has high levels of information security achieved through data encryption, as well as processes that ensure absolute traceability of the information being exchanged and maximum availability for its users through robust and redundant infrastructure 24/7. In addition, the certification services offered by PAC service providers have an average availability of 99.7 % for the users of electronic invoicing. It should be noted, that the exchange of data between PAC service providers and SAT, is regulated by service level agreements that are reviewed monthly.


PAC service provider successfully provides services of electronic invoicing to taxpayers including high volume issuers with multiple users in different sectors, such as: telecom m unications, finan­ cial sector, insurance government and retail. Beyond the maximum levels of security, many PAC service providers are aligned to international safety standards, w/hich offer even greater guarantees in its operations, regarding information security. Currently PAC service providers work closely with tax specialists, accountants and technologists of the private sector, to advise on their character of trusted third parties authorized by SAT, on solutions that meet the tax and technical regulations for the current fram ework for the electronic invoice. By bringing together the mass of specialists in regulatory and technical issues on electronic in­ voice in Mexico, PAC guide contributors of all the regimes and income levels, in the legitimate and safe ways to issue electronic tax invoices in Mexico. To ensure a comprehensive offer, the PAC ser­ vice providers integrates different technologies to communicate taxpayers with the tax authority. Thanks to the PAC service provider figure that enables the electronic invoicing model in Mexico; our country is recognized as a leader in the adoption of electronic invoice worldwide. Mexico has a key element in electronic invoicing that promotes the digitization of the public and private sector, generating real progress on competitiveness and incorporating all the industries to e commerce. The PAC service provider is a trusted third party in the operation of the electronic tax invoice, due to the authorization, regulation and audit executed by SAT.

1.3 Electronic Invoicing 2014 The technical scheme for XM L documents of electronic invoicing in Mexico is currently in its ver­ sion 3.2 and is defined by the Tax Code of the Federation as the rule for the issuance of electronic invoicing. For a digital document to become an electronic invoice, it requires that a PAC service provider, or the SAT itself perform the following validations on the electronic XM L file and that the document meets the technical specifications of the Appendix 20 of the RMF: •

The time period between the date of issuance of the document and the date on which it is intended to be certified not exceeding 72 hours.

Verify that the document has not been previously certified by thePAC.


Validate that the digital seal certificate CSD of the taxpayer issuer, with which the docum ent has been, signed, has not been canceled.

Validate that the CSD corresponds to the taxpayer who appears as the Issuer of the elec­ tronic Invoice, and that the digital seal corresponds to the submitted document.

If the docum ent complies with the above validations, PAC service provider or the SAT will provide answer to the taxpayer by incorporating the add-in of the Digital Tax Stamp, which integrates the following data: A)

Folio assigned by the SAT.

B)

Date and time of certification.

C)

Digital tax stamp.

D)

Serial number of the digital certificate with which the SAT made the certification of theCFD I.

E)

SAT digital stamp.

The validations described above, guarantee maximum security on electronic invoicing operations. Let's review some of the most prominent characteristics of the current electronic invoicing scheme: FEATURE OF THE SCHEM E

CFDI

Do you require application folios to the SAT?

No

Do you require sending monthly reports to the SAT?

No

Is there a risk that by lack of maintenance, update, or late renewal of licenses apocryphal invoices that do not comply with regulations to be issue?

No

Does it contain two-dim ensional bar code?

Yes

Does it contain UUID? (Universal unique reference of Invoice identifier)

Yes

Is it certified or stamp by a PAC to ensure that meets with the current regula­ tions of the technical integration of the XML?

Yes

Does it offer certainty that the invoice issued or received is legitimate and au­ thentic?

Yes

Does it operate with minimum standards of availability and service levels?

Yes

Are there standards on the treatm ent of the confidentiality of the Information?

Yes

Does it have recovery mechanisms of docum ents in case of contingency? (Disaster Recovery Plan, DRP)

Yes

Does it offer maximum security in storage and custody of the tax invoice?

Yes

Do service providers are authorized, regulated, monitored and audited by the SAT?

Yes


Key elements of the E invoice: safety, efficiency and savings SECURITY •

• •

Issuance and reception o f invoices that meet the tax regulations.

EFFICIENCY •

Authorization of administrative processes.

Stream lining of business cycles.

Assurance that the XM L is issued according to the regulation.

Immediate access to query invoice file.

Data exchange with customers of all sizes.

Elimination of the risk of data loss.

Integration of accounting information to user systems.

Incorporation to the e-commerce market.

Validating the authenticity of the sender

Highest level of security in the custody of documents.

SAVINGS •

Zero printing cost.

Zero shipping and courier services cost.

Zero storage costs.

Zero investment in business infrastructure for non-substantive operations.

Zero risk using solutions that do not comply with the current regulations.

Zero budget impacts to adapt processes and systems to regulation changes.

The SAT has said that the electronic invoice in Mexico is still in its first stages, since a number of fiscal tools v\/ill continue to be developed around it in the short and medium term. AMEXIPAC will continue to forge its work before the tax authority promoting best industry practices and support­ ing the electronic invoice users through timely guidance through its various distribution channels that are available through its web site www.amexipac.org.mx


AMEXIPAC, since its start-up, has issued bulletins about the following topics: Intelligent evolution. December 2012 Electronic invoice receipt. March 2013 Toward a decade of digital evolution. May 2013 Addenda. August 2013 Value contribution. October 2013 Payroll receipts: PAC Total Solutions. January 2014 Incorporation tax regime. March 2014


Chapter 2


E-commerce in the Mexican law 2.1 Commercial Code In the Comm erce Code are established a number of provisions that apply to commercers and those who perform acts of commerce.

2.1.1

Obligations in electronic media

The first reference to the e-commerce - to begin to leave behind the paper and thus the tradi足 tional evidence of the concept "piece speaks" as well as the Signature in their different ancestral conceptions of more than five centuries until 2000 - was given in the Code of Commerce. 2 .1 .1.1

IT reform s

The reform of year 2000 proposed an innovative commercial legislation and updated about IT topics. The business activity requires for an effective developm ent the trust that gives certainty. Currently, this is achieved with written records, i.e., with tangible records. With this scheme of documents consignation, the terms "original" and "signature" take on significant importance, being the only mean of commercial relations authentication. The rapid development of computer and communication systems has led to find faster ways to carry out the commercial activity. Modern electronic means (mainly internet and email) have managed to shorten distances and times o f order and delivery between the participants of the commercial activity, achieving greater efficiency in the processes of the industry, benefiting the economy in general. Therefore, commerce legislation has been exceeded, thus creating barriers or obstacles, because of loopholes in the law for the commerce, such as the use of paper appropriations. Given this scenario and in order to perform electronic transactions are considered necessary to modernize the commercial law so that when performing this activity, not only covering material documents but contemplate them as legally valid means sent by electronic means.


For this reform was used the Model Law of the United Nations Commission on International Commerce Law (CNUDM I) In e-commerce as the legal basis and the context, the law and the Mex足 ican commerce practice was discussed, to achieve that it precisely suits to the national reality. The above resulted In that international law on e-commerce supports the Mexican e-commerce regime, thus allowing greater security and certainty in electronic transactions both national and International. In the fram ework of this modernization of the commerce laws attached e-commerce, two goals are achieved: A)

Remove existing barriers to e-commerce, by adjusting the commercial practice with the law in this matter.

B)

Include the progress and specific characteristics related to e-commerce, as is the possibility of access to the products in photos via the internet without the need of having the product physically present to evaluate it.

The importance of these reforms emanates from the fact that the use of modern means of com 足 munication, such as electronic mail and Electronic Data Interchange (EDI), has spread rapidly in both commercial transactions national and international. Since commercial activity is vital to the life of Mexico, it needed constant updating, so this reform is focused on creating a legal fram e足 work that allows a healthy integration and development of the commerce by electronic means, i.e. making the regulations a reality. Today in Mexico and in the vast majority of the countries are using EDI for e-commerce (B to B (business to business). An example of this is the Institute Mexicano del Seguro Social (IMSS), which uses it for enrolling activities (enrolment, reductions and changes to salary) with more than 30.000 employers. This reform is an instrument to regulate certain commerce agreements by setting a minimum of requirements or characteristics that documents must have to be considered with full probative value. To achieve this, this reform included a section devoted to e-commerce. The highlights are the following: A)

The electronic, optical or any other technology media are recognized specifically as tools to perform acts of commerce.

B)

Reaffirms the reliability of the Information issued by electronic means, based on the use of passwords, keys and other security systems, using value added networks such as: VAN and/ or AS2, which are the means by which circulate all the EDI documents and/or XML. It should be noted, that there are different modalities for secure communication, this may be caused by physical means such as: the communication link (viz SSL), or through the message itself that allows you to identify which has not been altered or modified.

C)

The consent is understood changing and revise when the information Is received.

D)

It sets out a series of characteristics that give the documentation, via electronic means, a degree of security similar to that of the paper-based documentation.


E)

It facilitates the e-commerce by giving equal treatm ent to contracts which have computer support related to those who rely on paper-based documentation. This seeks improvements to the commercial activity in general and the Mexican economy as a whole, facilitating com足 mercial activities and achieves a better linkage with foreign markets, as both foreigners' producers and consumers see e-commerce as an everyday phenomenon.

As can be seen, the reform of May 2000 was a great step forward in the regulation of e-com 足 merce; however, it was essential to incorporate the provisions tending to prove the originality, integrity and authorship of data messages. Thus, the stage was set to incorporate the figures of the electronic signature and advanced electronic signature and, therefore, the principles of au足 thenticity, identification, integrity and non-repudiation governing electronic transactions. It is interesting to note that in other economies, the adoption of the electronic media to build the confidence of the participants has not required at all times the intervention of the authority, but the confidence that arises between users. 2.1 .1.2

Reform s data m essages

For year 2003, was established a reliable method to point out that data messages actually come from a sender or recipient, sender, as well as to ensure the integrity o f the data message, this method was related to the advanced electronic signature or reliable. Given the urgent need to establish legal presumptions regarding the integrity and authenticity of electronic transactions, was incorporated into the Code of Commerce a chapter concerning the signatures, which outlines the requirements to meet for an electronic signature is considered as reliable or advanced. By recognizing the Code of Commerce that in commercial transactions and in the formation of them electronic media may be used, also admitting that, through them, will be able to identify the issuer of the act, as well as determine the authenticity of the content of the data message that generated the act of commerce. In Mexico, an electronic signature has the same legal effects as handwritten signatures, being adm issible as evidence in court and is used to; A)

Identify a person.

B)

Provide certainty to its personal involvement in the act of signing.

C)

To associate that person with the content of a document.

The characteristics of the advanced electronic signature are the following: A)

Integrity. It can detect if the original message was modified.

B)

Non-repudiation. The author of the message could not say that he did not do so.

C)

Authenticity. The message sender is accredited, and its "electronic signature" will have the same validity as a handwritten signature.


D)

Confidentiality. The information contained in the message can be encrypted or encoded, so that only the receiver can decrypt it.

Therefore, the legal effect of the signature in the commercial transactions, consists in the fact that there has been a voluntary agreement between the offeror and the acceptor clearly identi足 fied, as vjeW as the content of these w/ills is attributable to those w/ho signed the document. Meanv\/hile, the Code of Commerce establishes that when the law requires the signature of the parties in a legal act, this requirement will be fulfilled with regard to data message, provided that it is attributed to these parties. The Code of Commerce provides that traders are required to preserve duly filed for a minimum period often yearsthe originals of those letters, telegrams, data messages or any other documents indicating that contracts, agreements or commitments that give rise to rights and obligations. The Code o f Commerce provides that when the law requires that the information is kept in its original form, it shall be fulfilled this obligation when there is a reliable assurance the information wilt preserve its integrity from which the data message was generated for the first time. For this purpose, it is considered that the contents of a data message Is entire, if it has been complete and unchanged, being that the degree of reliability required shall be determined in accordance with the purposes for which the information was generated and the circumstances relevant to the case. It is interesting to note that in Mexico the electronic signature of the organization is also issued. Although a legal representative of the company or organization is who deals with it, it is not re足 sponsible for the acts of the organization, but its sole manager or the governing body through its members. Regarding the conservation of the original data messages, the Code itself states that, in addition to the integrity of the document, that the documentation is accessible for further consultation. The Ministry of Economy is responsible for issuing the Official Mexican Standard that establishes the requirements to be observed for the preservation of data messages. In this regard, in No足 vember 11 of 2006, was published in the DOF the Mexican Official Standard NOM 151 "business practices-requirements that should be observed for the preservation of data messages and other electronic signature services". This provision is very important as it represents an important step in the e-commerce field in Mexico. The preservation of data messages for ten years should be made in accordance with this standard, in order to be considered complete and can be used as evidence in court. This standard represents a major step to provide legal certainty to the users of this type of trade and for all those who use electronic means to assume rights and obligations towards third parties, since there is already a competent authority responsible for its implementation. Colloquially we can say that the NOM 151 aims at extracting an electronic document its "trifle", "DMA" or "finger足 print" through a tool. When there is a doubt about comparing 2 documents or even in the same


document, it is extracted once again that "DNA" and compared to the original. If this is the same, that will be the unaltered authentic document. The preservation of the electronic docum ent Is responsibility of the user, the "preservation" quoted in standard 151 Is not therefore the custody of the electronic document, but rather the ability to protect this "DNA" for future comparisons.

2.2 Accounting in electronic information systems 2.2.1

Obligation to keep accounting

The Federal Fiscal Code {CFF)states that people required to maintain accounting records, must keep the corresponding records or entries in electronic media; also enter their monthly account足 ing information through the Website of the Tax Administration Service, in accordance with gener足 al standards issued for this purpose.

2.2.2

Types of tax invoices

Various tax provisions required for the individuals and legal entities to issue invoices for the activ足 ities they undertake, such invoices should meet the requirements set. The requirements to be met by tax receipts are the following: 1.

RFC and fiscal regime a)

RFC key of the person who issued it

b)

Fiscal regime in which they pay taxes according to the ISR law (Optional, only indicate NA).

c)

When you have more than one location or establishment, it should indicate the ad足 dress of the premises or establishment in where the invoices are issued.

2. Folio number and digital stamp from the SAT and

issuer.

3. Place and date of issuance. 4.

RFC key of the person for whom it is issued. W here there's no RFC key, should use the generic key. Generic RFC key in CFDI and residents abroad Where there's no RFC key, should be assigned the generic key XAXXOIOIOIOOO; in the case of transactions with foreign residents, not registered in the RFC, use XEXXOIOIOIOOO.


5.

Quantity, unit of measure and class of goods or merchandise or service description or from the use or enjoym ent covered. Can be uses the measure unit as applicable to commercial uses and In the case of the pro足 vision of services or tem porary use or enjoym ent of property can be noted NA or any other similar. Real Estate Lease Must include the tax account number of the property, or the identification data of the real estate participation certificate.

lEPS The issuing taxpayers subject to lEPS who sell processed tobacco must specify the total weight of tobacco content in the carved tobacco, If applicable, the number of cigarettes sold. Cars The issuing manufacturers, assemblers, traders and importers of cars in final form, which are intended to stay in the country for their use or marketing, must contain the vehicle iden足 tification number the vehicle key that corresponds to the car. The value o f the vehicle sold must be expressed in national currency. 6.

7.

The unit value recorded in number. a)

When graduates optical lenses are sold, it should remove the corresponding amount for this item.

b)

Those who provide school transportation service should remove the corresponding amount for this item.

The total amount recorded in number or letter. Identify how the payment was made, cash, wire transfer, personal checks or debit cards, credit cards, service cards or electronic cards. Taxpayers may Incorporate in the CFDI Issued, the expression NA or any other similar.


8.

9.

Import Goods (specific requirements) a)

The number and date of the customs document, In first-hand sales.

b)

Imports for a third party, the number and date o f the customs document, the items and amounts paid by the taxpayer directly to the foreign supplier and the amounts of contributions paid by reason of the importation.

Other requirements: a)

The CFDI generated to cover the tax withholding shall contain the requirements estab足 lished by the SAT through general rules.

b)

The amounts covered in tax receipts that do not meet any requirement established in article 29-A or 29 of the CFF, or when data is express in a different way from that indi足 cated by the tax provisions, may not be deducted or credited for tax purposes.


%


Electronic media for the issuance of digital invoices 3.1 Mexico leader In April 2011, Mexico was recognized with the award for "Innovation of the Tax Administration" awarded by the Centro Interamericano de Adm inlstraciones Tributarias (CIAT), thanks to elec足 tronic invoice, project in which has been involved since its inception, the contributor and friend, Lie Fernando Martinez Coss, Central Administrator for Quality Management of the Tax Adm inis足 tration Service (SAT). In Latin America, has almost become a practice and part of the strategies to follow in the Tax Ad足 ministrations implementing electronic invoice, Brazil and Chile were the initiators, but not make it mandatory, Mexico is ahead and is now the leader and model to follow. In Septem ber 2011, the SAT participated in an event called EXPP Sum m it 2011 at its seventh meeting, in which are grouped companies and private consultants, experts in electronic invoice in Europe and Asia, and Mexico was qualified as a global leader within a set of other countries that have participated in the implemented model. During 22 to 26 of July 2014 will be held in Mexico a global meeting called 1^ Global Forum the Electronic Invoice (Foro Global de Factura Electronica) sponsored by the SAT and AMEXIPAC, probably in the city of Cancun, Q. R. which is expected to be a great success.

3.1.1

Definition

CFD is defined as a digital document with fiscal validity, which uses internationally recognized technical standards of security to ensure the integrity, confidentiality, authenticity and non-repudiation of the document.


3.1.2 Benefits from their use The CFD facilitates the management of the companies as It could save up to 80% in operating costs and be more efficient in the services provided. Among the advantages of using these Invoices are: A)

Does not require a pre-printed and pre-numbered format.

B)

Can be viewed and printed at any time.

C)

The invoice format Is versatile, there Is no single model. The authorities only require comply with certain requirements, which should appear in the body of the invoice.

D)

It has the same legal and tax validity as the pre-prlnted Invoice.

E)

It avoids duplicity and forgery, since it prevents the digital stamp and IT security measures that need to be established.

F)

The printing and management costs are significantly lower than the pre-printed invoice, among many others associated with the paper.

3.1.3

Option of issue

For the Individuals and corporations can Issue electronic Invoices of their operations, must have with a certificate FIEL and keep their records In electronic systems, as long as such documents have a digital stamp covered by a certificate issued by the SAT, which holder Is the individual or corporation Issuing the Invoices.

3.1,4

Requirements for issuing

Taxpayers, who exercise the option of Issuing digital docum ents (CFD), shall comply with the fol足 lowing requirements: A) Request th e digital stannp certificate Request before the SAT the certificate for the use of digital stamps. It should be noted that the tax足 payers may choose to use one or more digital stamps that will be used exclusively for the Issuance of Invoices through digital documents. The digital stamp will prove the authorship of the electron足 ic invoices issued by the individuals and corporation. Taxpayers can request to obtain a certificate of digital stamp to be used by all its locations or premises, or request to obtain a certificate of digital stamp for each of its locations. The SAT will establish the requirements for control and Identification to which be subject to the use of the digital stamp.


The request of a digital stamp certificate may be made only by electronic format that has the FIEL of the applicant. The elements used in the processing of digital stamps, are the following: I.

Original string, the element to stamp, in this case a digital tax invoice,

li.

Certificate of digital stamp and its corresponding private key.

III. Algorithm s for public key cryptography for an advanced electronic signature. IV. Conversion specifications of the advanced electronic signature to base 64. To create digital stamps a public key cryptography applied to an original string is used. Public key cryptography is based on the generation of a couple of very large numbers closely related to each other, in such a way that an operation on a message encryption using as a encryp­ tion key one of the two numbers, produces an altered message in its meaning that can only be returned to its original state by using the corresponding decry p fo n operation, taking as a decryp­ tion key the other number of the pair. One of these two numbers, expressed in a data structure that contains a module and an expo­ nent, is kept secret and is called "private key", while the other number called "public key" in bina­ ry format and accompanied by identification information of the sender, in addition to arating of validity by a trusted third party, is incorporated to a file called "Certificate of advanced electronic signature or certificate for digital stamps"

B) Issuance of CFD by own means or through a third party The issuance of the CFD may be made by own means or through service providers. These service providers must be previously authorized by the SAT, covering the requirements for this purpose indicated in general rules. They must also demonstrate that they have the necessary technology to issue such documents. Furthermore, the internet site of the SAT defined as an authorized supplier of CFDI (PACFD), to whom has the SAT authorization to generate and process outside of the fiscal address of the one who hires, the receipts for tax purposes by electronic means and 100% digital, without thattherefore It is considered that records are managed outside of the mentioned address. The authorized providers of certification (PAC) of CFDI must meet the following requirements: a.

Maintain absolute secrecy of the information of the CFDI that certify the taxpayers, in terms of the Federal law on the protection of personal data in the possession of individuals, pub­ lished in the DOF on July 5, 2010, such reserve must also be stipulated in writing as a re­ quirement on the provider.


b.

Return to the taxpayer the CFDI previously validated according to w/hat is set out in the CFF, as well as mentioned in the other applicable provisions, with assigned number and with the digital stamp from the SAT.

c.

Send to the SAT immediately a copy of the CFDI once they have been certified. This delivery will be made with the characteristics and technical specifications provided by the SAT at the time of the authorization.

d.

Have available at all times to the SAT the possibility of remote or local access to the data­ bases where the information is safeguarded and copies of the CFDI certified in the last three months.

e.

Provide the taxpayer issuer with a tool for consultation of the detail of their CFDI certifi­ cates, this tool must comply with the specifications listed in the corresponding section lo­ cated on the website of the SAT.

f.

Retain the CFDI certificates, for a term of three months, in an electronic or optical means or any technology, although not surviving the legal relationship under which the CFDI was certified.

g.

Manage, control and protect through its certification system of CFDI, the CSD that the SAT will provide to perform its function.

h.

Communicate in writing or via e-mail to their clients if temporarily or permanently suspend their services, and give the SAT, if any, "Notice of liquidation, bankruptcy or legal term ina­ tion agreement of the authorized entity to operate as a provider of certification of CFDI". In the case of the notice to its customers, this must be made thirty working days in advance in case of tem porary or permanent suspension of operations.

i.

Subm it the "electronic notice of liquidation, bankruptcy or legal termination agreement of the authorized entity to operate as a provider of certification of CFDI ", when the provider between in the liquidation process, bankruptcy or its management body has taken term i­ nation agreement of the society, as applicable, within 72 hours or before the end of the liquidation process, bankruptcy or legal extinction of the entity, whichever occurs first, the provider of certification of CFDI must deliver to the SAT the copy of the CFDI which certified and which is still pending for that delivery.

j.

Validate that the CFDI referred complies with the following: I.

The period of time between the dates of dispatch for certification o f the document and the date on which it is received by the provider of certification does not exceed 72 hours.

II.

Th atth e docum ent has not been previously certified by the certification provider itself.

III.

That the CSD of the taxpayer Issuer, with which the document was stamped, has been in force at the date of generation of the submitted document and has not been canceled.


IV.

That the CSD with which the document was stamped, corresponds to the taxpayer who appears as the CFDI issuer, and that the digital stamp corresponds to the subm it­ ted document.

V.

That the document meets the technical specification of the Appendix 20.

Vi.

If CFDI meet the above validation, the provider of certification of CFDI will respond to the taxpayer by incorporating the add-in that integrates the following data: •

Folio assigned by the SAT

Date and time of certification.

Serial number of the SAT digital certificate to which

SAT digital stamp.

it was stamped.

For more information, the SAT can provide unbiased information, objective and legal oriented to taxpayer obligations, which is available on its website.

3.1.5

Tax secrecy on CFD

As part of the new scheme of tax verification, an obligation to taxpayers to deduct or credit a tax receipt to verify on the SAT website the authenticity of such invoices is established. Therefore, article 69 of the CFF notes that the tax secrecy operates when the SAT provide infor­ mation to the taxpayer to verify the authenticity of the tax invoices that have been issued to its name through its website.

3.1.6

Tax evasion crime

We need to take into consideration that will be punished with the same penalties for the tax eva­ sion crime, who: A)

Commercialize safety devices in the tax invoices, i.e. when authority finds devices that contain identification data which do not correspond to the taxpayer for which they were authorized.

B)

Grant tax purposes to invoices of which safety devices do not meet the requirements.

C)

Grant tax purposes to the digital receipts when do not meet the requirements.


3.1.7

Taxpayers registered ot Federal Taxpayers Registry (RFC)

The Tax Administration Service in their management report for the fiscal year 2013, published on the SAT webpage in April 2014 submitted the updated taxpayer census (figures in milüons) of e n tife s and individuáis enrolled in the RFC.

Active taxpayers 41,659 36.980 33.469 OA

23,941 24.538

25,909

2005

25,782 20.581

20.490 9.809

28,305

12,765

16,510

14.415

2006 2007 ■ Entities

23,500 24.527

2008

2009 2010 alnd ivid uals

2011 2012 Salaried

2013

Note: Information provided by the SAT

3.1.8

Pubficatíon o f unreliable taxpayers

In term s of the CFF several articles w ere modified to establish exceptions to the fiscal reserve; therefore, since 1 January 2014, the fiscal authority disclosed through the v^ebsite SAT57, the ñame, company ñame and RFC for taxpayers who have failed to comply with the tax authorities, this Information is updated every 15 days. It is Important to mention that taxpayers, who do not agree with the disclosure of their data in the SAT website, may conduct clarification, ¡n which they will be able to provide the evidence to his claim.


3.1.9 Tax Mailbox From August 2013 the SAT through its website^ in the "M y Portal" section, implemented the new service called "Tax Mailbox". It consists of a new/ way for notify taxpayers electronically in a more flexible, timely, reliable, sim 足 ple, convenient and safe. The Tax Mailbox has a communication service, in which discloses information of interest, such as announcements, invitations and tax information, in order for taxpayers to know immediately the programs and benefits that SAT offers. The tax mailbox will apply to corporation as of June 30,2014 and for individuals as of January 1,2015. In addition, has the electronic notifications service In which SAT may send electronic notifications of administrative acts performed, in order to have timely knowledge of the information require足 ments and resolutions on the paperwork submitted.

3.1.9.1

Benefits

Among the benefits that this new form of taxpayer notification by the SAT, include: Send an email o a text message to the taxpayer, indicating that there is a new electronic document pending to notify in the Tax Mailbox. The notification is done at any time and place where you have an Internet connection. The taxpayer can verify that the electronically notified administrative act was issued by the SAT and signed with the FIEL by a competent officer. Provides legal certainty of the notified administrative act. The taxpayer knows immediately any request for information or resolution resulting from its procedures to perform timely submission of information or clarification.

3.1.9.2

Issuance of electronic invoices from cell phones applicable to individuals

The Ministry of Finance and Public Credit through the Tax Administration Service reported that the mobile application of the system "My accounts" is a new electronic tool to efficiently keep track of income and expenses and to easily comply with their tax responsibilities. In this regard, the mobile app, now available on Android mobile platform, has the same features as the "My Accounts" system available on the SAT website, which allows taxpayers tracking ex足 penses and income and exploit their business opportunities, generating invoices when requested by customers.

www.sat.gob.mx


This tool is available for individuals, registered before the SAT in business activities, professional services, leasing, or in the new incorporation fiscal regime.

3.1.10 Relevant asfjects of the tax reform 2014 In terms of Tax Invoices include the following m andatory changes for 2014:

3.1.10.1

CFDI obligation issued by deductions

Taxpayers who make deductions shall issue CFDI for such deductions.

This in order to have all the information through these means and be able in a short time to remove the obligation to file information returns on withholding and issuing certificates.

The CFDI generated for purposes of protecting the tax withholding shall contain the require­ ments established by the SAT through general rules.

3.1.10.2

Deadline for delivering the CFDI to the acquirer

Once the SAT digital stamp is entered into the CFDI, if any, of the provider of certification (PAC), taxpayers must deliver or make it available to their customers: •

Through the electronic media available to SAT through general rules.

When requested by the customer, the printed representation, which only presumed the existence of the tax receipt.

3.1.10.3

Refunds, discounts, and rebates

Establish the obligation to Issue a CFDI in case of refunds, discounts and rebates.

3.1.10.4

Payment

W hen an obligation is settled may be considered under these ways:

3.1.10.5

One single payment

W hen the consideration is paid in one single payment, at the time of Issuing the digital tax receipt through internet corresponding to the operation In question: •

This situation will be expressly Indicated.

In addition the total amount of the transaction will be Indicated.

W hen appropriate, the amount of taxes shifting broken down into each of the applicable tax rates, and

W here appropriate, the amount of taxes withheld.


3.1.10.6

Installments

W here the consideration is not paid in one installment a CFDI will be issued for the total value of the transaction at the time that It is being made and a CFDI will be issued for each of the pay足 ments subsequently received, in the terms established by SAT through general rules.

3.1.10.7

Cases in which CFDI are not deductible

The amounts that are covered in tax receipts that do not meet any requirement of Articles 29 or 29-A of the CFF, as applicable, or when the data contained therein are translated into different than indicated by the tax provisions, may not be deducted or credited fiscally.

3.1.10.8

Payroll Deduction

Payroll expenditures paid to workers to be deductible as of January 1, 2014 must have payroll digital tax receipts. With this requirement the informative multiple tax returns for wages and salaries will no longer be necessary. The certificates must be stamped by an authorized provider of certification (PAC), authorized by the Tax Administration Service (SAT), and therefore autom atically this agency will have the information subscribed in such digital receipt; i.e., earned income, deductions, income tax withheld and the Mexican Social Security Institute will also get this information on time, so can verify the due compliance of the employer social security contributions that this made of workers. Employers are required to send to their workers the XM L format of the wages paid and in the event of being unable to do so may submit a printed representation of the CFDI of covered wages to their workers, which shall contain at least the following data: the tax folio, the RFC of the em 足 ployer and employee. Therefore, it is considered that the taxpayers who issued the CFDI for wages covering their work足 ers, will consider as fulfilled the requirements of deductibility of such invoices for tax purposes at the time that the payment of such wages is made, regardless the date on which the CFDI was issued or has been certified by the CFDI authorized provider of certification. The payroll digital receipt must include: Employer registration number, employee number, CURP, social security number, payment date, initial payment, number of days paid, employment rela足 tionship starting date, seniority, position, payment frequency, computed base wage, integrated daily wage, regime type, contract type, working day type and position risk. In reference to the optional attributes: department, CLABE and bank. Perceptions elements the required attributes are: total taxed, total exempt, concept, amount taxed amount exempt, payment type and key.


On elem ent or group: Deduction required attributes are: Concept, amount taxed, amount exempt deduction type and key. Regarding to the inability element required attributes are: Inability days, discount and inability type. Finally in the elem ent of overtime required attributes are: Hours type, overtime, amount paid. With the generation of digital regarding payroll, employers give greater legal certainty in the in足 formation for the three parties, company, SAT, and w/orker. We remind that this requirement shall be met as soon as possible, to avoid setbacks, excess payments troubles, taxes, restatements, surcharges and fines.

3.1.10.9

Online Accounting

Accounting for tax purposes will be integrated with accounting systems and records, working pa足 pers, books and corporate records, account statements, special accounts, inventory control and valuation method, equipment or electronic systems of taxation, in addition to the documentation related to tax compliance and one that proves the Income and deductions. The provisions governing that will begin to subm it the accounting as of the second half of 2014 and will be staggered to taxpayers.

3.1.10.10 Nevy Regime of Incorporation (RIF) From fiscal year 2014 small taxpayers should be incorporated into this new tax regime of incorpo足 ration (RIF). Here the use of electronic means to taxation are essential, because we need to have the password to access the system on the SAT website, so that these small contributors will be Incorporated into the new RIF, work that has been developing our colleague, the Lie. and C. P. Claudia Covarrubias Ochoa, Central administrator of taxpayer services of the SAT, being responsible for facilitating, advertise, promote and answer questions about the RIF throughout the countf7, which were given conferencesand talks with the head of the SAT and we participated by supporting this transition. The regime of incorporation (RIF) covers individuals that their activity In the previous year, had not exceeded the amount of two million pesos and only performing business activities, alienates goods or provide services for which it is not required for Its fulfillment a professional degree, regardless of the activity engaged as long as correspond to a single income of this regime; i.e., no income from other concepts (see SAT website). RIF's taxpayers who have one or more employees must comply with the CFDI payroll. Therefore Is Important to highlight, among others, the benefits of RIF Incorporation, as the following: a)

Exemption of the ISR, 10% increase per year until 2023.


b)

VAT exemption in 2014.

c)

Exemption of lEPS in 2014.

d)

Voluntary insurance.

e)

IMSS insurance.

f)

Pension fund.

g)

Obtaining financing to fund lost by ten thousand pesos.

h)

Ease in obtaining credit.

i)

Use of "My accounts" electronic system to record accounting and invoicing. 3.1 .10 .11

M y A cco un ts

It is a mandatory application for the individual taxpayer that has entered the RIF and optional for all other regimes for both businesses and individuals. By means of this system: •

You can issue, consult and cancel electronic invoices.

Capture your income and expenses, as well as consult them.

The information generated by these records will be used to perform the integration and presen­ tation of their bi-monthly statements. "M y Accounts" will be entered with the RFC and password.

3.1.11 Fiscal Miscellaneous Resolution 2014 According to the Fiscal M iscellaneous Resolution for 2014 published on December 30, 2013, the relevant aspects highlighted that are on tax invoices: 3.1 .11 .1

CFD I storage

According to the CFF, taxpayers who receive and issue CFDI must store them on magnetic media, optical or any other technology, in electronic format XML.


3 .1 .1 1 .2

E xp ed itio n th ro u g h th e Electro n ic Invoice G eneratio n Service (CFD I) o ffered by th e SAT

Taxpayers may issue CFDI without referring them to a authorized provider of certification of CFDI, provided they do so through the electronic tool called "Generation of electronic invoice service (CFDI) offered by the SAT" which is in the SAT website. 3 .1 .1 1 .3

A d d -in s to in co rp o rate tax inform atio n at th e CFDI

The SAT will publish on its website the add-ins to enable taxpayers to specific sectors or activities, to include tax requirements in the CFDI they issued. The add-ins published by the SAT, will be mandatory for applicable taxpayers that applied to them, after thirty calendar days from its publication in the cited page, except when there is any facility or provision that established a different period or release them of its use. 3 .1 .1 1 .4

G e n e ric Key in th e RFC In CFD I and residents abroad

Where there's no key in the Federal Taxpayers Registry, the generic key is entered in the RFC: XAXXOIOIOIOOO and in case of transactions with foreign residents when it comes to transactions carried out with living abroad, who are not registered in the RFC, should be use the generic key In the RFC: XEXXOIOIOIOOO. 3 .1 .1 1 .5

O ptio n to issue C FD I w ith o u t m en tio n in g th e data o f th e custom s declaration

Taxpayers who imported or exported goods by means of pipelines or cables, as well as those that are fall in the cases provided by rule for 2013, will be relieved to from state in the CFDI issued, the number and date of the customs document referred to in the above fraction. 3 .1 .1 1 .6

Se rv ice card definitio n

Service cards are those issued by non-bank commercial companies in terms of the provisions issued by the Bank of Mexico. 3 .1 .1 1 .7

E xp en d itu re s paym en t on b e h a lf o f th ird parties

Establishes the procedure to be followed when payments are made on behalf of third parties and subsequently recover the expenditures made, highlighting that should include the wording "through (RFC key of the taxpayer who perform the operation)" in the CFDI, as well as the expen足 ditures reimbursement, shall be made by non-negotiable check or transfers to the taxpayer who paid for third party, without changing the amount in the CFDI, and also the CFDI issued by the remuneration charged to the third, taxpayers must subm it to them the CFDI issued by suppliers and service providers.


3 .1 .1 1 .8

Issu ance o f in vo ices from tra n sa ctio n s w ith th e gen eral public

Taxpayers conducting business with the general public may develop a CFDI dally, weekly or month­ ly showing the total amounts for receipts of the appropriate period, using the generic key o f the RFC. The fiscal regime of incorporation (RIF) may prepare the CFDI bimonthly. 3 .1 .1 1 .9

O p tio n s fo r CFD I issu an ce

Options are granted for tax invoices Issuance (CFDI) for the following transactions: A)

Purchase of products from the primary sector.

B)

Expenses and deductions in the granting of the use or temporary enjoym ent of property.

C)

Purchase of products from the mining sector.

D)

Purchase of used vehicles.

E)

Acquisition of waste and materials in the recycling industry.

F)

System product of the agricultural sector.

3 .1 .1 1 .1 0 O ptio n fo r payroll CFD I Issuance There are the following options for payroll CFDI •

Must comply with the complement the SAT published on its webpage, the same require­ ment should contain the records of any tax withholding.

There is an option to deliver or send to their workers the electronic XM L format of wages paid, or deliver a printed representation of the CFDI.

The wages payments are deductible when they are actually paid. 3 .1 .1 1 .1 1 Tax registration system

It offered the option to all individuals to enter the electronic application "tax registration system" (SIRF), where they can keep their accounting and issue invoices. 3 .1 .1 1 .1 2 A irp lan e tickets. A irlin es 3.1.11.12.1

Payment of contributions and expenditures in passenger and freight air transportation

The companies providing air transportation services of passengers or goods, national or Interna­ tional, will issued by the income earned by that concept the corresponding CFDI. When within the amounts loaded or charged to the purchaser of such transportation services, included amounts charged on behalf of third parties with whom have a legal relationship and are


not attributable as income to the carrier, these service providers must use the add-in published by the SAT on its website, which will identify the amounts relating to federal taxes and other charges or fees, including for such purposes the identification of the third party using the lATA Code {Internotional A ir Transport Association). 3.1.11.12.2

CFDI issuance for passenger and freight air transportation services

Those providing air transportation services of passengers or goods, national or international, when operating tickets sales and guides using control systems, issuance or distribution of pay­ ments and centralized shared services with other providers of the same services, may comply with the obligation to issue and deliver CFDI for such operations after two working days from the immediately following day that in which payment is made of the operation. 3.1.11.12.3

Deferral invoice issuance for air transport services

During the period from January 1, 2014 until June 30 of the same year, taxpayers providing pas­ sengers air transportation services may defer the issuance of the CFDI, during the same period, provided that no later than July 1, 2014 have been issued to customers who have so requested, all CFDI for the designated period. Similarly, companies that provide airtransport services of goods, during the period from January 1, 2014 and until March 31 of the same year, could defer the issuance of the CFDI provides no later than April 1,2014 had complied with issuance to customers who have so requested, all the CFDI for the designated period. Taxpayers who purchase air transportation services from providers of these services that have opted to defer issuance of CFDI in the term s of this article, for the purposes to prove deductions or credits, if any, may use copies of passenger tickets, electronic invoices or electronic tickets called "E-tickets" that cover passengers tickets, air cargo guides, miscellaneous charges orders and excess baggage fee invoices and other services related to the trip, if and when, they obtain the corresponding CFDI no later than December 31, 2014.

3.1.12 XML Format Any developm ent for the generation and interpretation, as well as the conservation of a digital tax receipts, as is the faith, you should consider the XM L format as unique to contain fiscal infor­ mation determined by the SAT. The XM L format (English acronym for Extensible Markup Language), is an extensible metalan­ guage label developed by Word. The XM L schema Is defined only to contain fiscal data. The ad­ ditional information (example: business information, bar code, discounts, promotions, purchase order number that is billed, etc.), can be inserted within the invoice in a tag named <addenda>.


3.1.13 The addenda As part of the structure of the electronic Invoice, is a paragraph (node) that allows taxpayers to integrate to the document additional Information that Is not of a fiscal nature, but can be used. This paragraph has been called addenda. The purpose of the addendunn Is to allow the integration of additional information In electronic format within the body of the standard digital tax receipts (CFD, or XLM), which facilitates the transport of the formats and additional Information, thereby avoiding parallel shipments. Nor足 mally the addenda are agreed between the parties involved, with the characteristic of customer and supplier, in an exchange of data. A way to have Industries Interconnected together considering customer and provider Is the addenda. The Tax Administration Service (SAT) disclosed how the addenda can be use In the miscellaneous tax resolution through the Item III.C of the appendix 20, because although It is not a requirement of a fiscal nature, there are rules that must be followed by the Information or formats that stores the document to ensure their proper Integration. To Include addenda In an electronic Invoice (CFDI), It is necessary to: a)

Additional Information on the taxpayer format is generated.

b)

A digital tax receipt (CFD) is generated to the standard defined by the SAT itself and add the addenda as additional Information after the authorized providers of certification service (PAC) has been successful.

c)

Within the Invoice must be expressed In the particular format of the taxpayer by following the guidelines set out in appendix 20 of the miscellaneous tax resolution.

Incorporate addenda to a receipt helps automating processes, and in most organizations this translates Into savings In Its operation costs, making them more efficient and competitive. In pub足 lic institutions also helps to promote transparency and combating corruption and discretion that ensures the data have been supplemented and complemented. We must consider the addendums as one of the best practices to be followed in a tailor business between Customer and Supplier. Currently the electronic invoice has been seen as a tax obligation for many companies, an oppor足 tunity for improvement and optimization of processes, changing and making success stories that have already been developed In several industries, by leveraging the use of electronic documents to reduce and/or eliminate manual processes associated with the ancestor paper usage. By eliminating paper should seek Information of the addenda will have all the sufficient elements to be able to process and approve/reject a payment or credit In the operation and management of the business.


The addenda have the feature that allow you to attach as much information as is required, includ足 ing in files of type PDF, Excel, Word, or images that support the invoice payment. By adding all this information in the electronic document, you can have the evidence of a transaction In a single place (on the purchase order, in the w/arehouse receipt, the invoice, the payment information, etc.). This allow/s to store the movements on a very efficient manner, as well as locate any trans足 action through electronic searches taking seconds, compared to the hours or days it took earlier, and eliminating, almost completely, the space occupied by those files in the companies. Regarding the management of information by means of the addenda, once you have the invoice, the integration with the accounts payable system (CXP) subject to approval by the responsible, is som ething that benefits the company by elim inating data capture errors, if any. The application responds electronically to the supplier without the need to call or send an email, which allows the supplier to correct the information and resend the invoice in minutes. No more calls, no more courier service, no more information capture in the CXP system. If we notify the supplier about the rejections, clarifications and the payment of their invoices by electronic means, they can also process these responses in their systems of accounts receivable thus elim inating the reconciliations. Electronic invoicing seen as a tax obligation for many companies, can be considered as an op足 portunity for Improvement, process optimization and transparency and also from the economic point of view always save considerable costs and expenses, time (in submission. In preparation, in clarification, and many more) and also in spaces, as no longer been a physical file. It is important to know the management of the addenda is something easy adoption meeting at least the following characteristics: a)

Sufficient information in the fields requested.

b)

Support in the portal.

c)

It is the supplier himself who makes data input.

d)

Having previously the purchase or service specifications, avoiding duplicity in its capture.

e)

Implement receipt acknowledgments.

f)

Explain the type o f communication that will be used and the means to verify the shipping and receiving.

Given the need to establish an efficient, orderly and legitimate communication channel with the SAT, which allows feedback and attention as industry to the regulatory requirements of the elec足 tronic invoice, in June 2012, the Mexican Association of licensed providers of certification, A. C. (AMEXIPAC) was established, with the participation of eight founding members who took over the task of solidly structure this effort to invite other authorized providers of certification (PAC) to join the Association.


In this way, AMEXIPAC presented its visión and objectives to the SAT, which gave its approval to conform and support the joint cooperation In the various working committees. Some of the objectives covered in this Association, referto: to represent and act an interlocutor body of the PAC, with the public and prívate sector; achieving the cooperation between the PACs to look for best practices and quality standards in the provision of their services, to encourage and promote the use of electronic/digital media in the collaboration betv/een companies and individuáis and, in turn, between these and government entities, based on the use of electronic signatures and digital tax invoices. The members of the Board of Directors of AMEXICAP are: Javier Vega Flores, President; José Luis Ayala, Vice President; Gerardo Ruiz, Vice President; Benito Celorio, Councilor Secretary; Greg Werner, Counselor; Roberto Márquez, Counselor; Fernando Zabal, counselor and Rafael Zanon, Counselor.

9, 662, 427,141 C FD -C F D I

2005

2006

2007

Note: Information provided by the SAT

2008

2009

2010

2011

2012

2013


1,028,317

Taxpayers ยกssuing electronic invoices

100%

Digital Tax invoices (CFD)

u Digital Tax invoices through internet (CFDI)

Note: Information provided by the SAT

9,662,427,141

Electronic invoices issued

7,106,946,064 74%

B Digital Tax invoices (CFD)

2,555,481,077 16% Digital Tax invoices through internet (CFDI)

Note: Information provided by the SAT

100%


CFDI EVOLUTIONARY BOX Period

2012 Issuers

CFDI

Issuers

CFDI

Issuers

CFDI

332.315

119,151,450

213.494

448,595,264

372.915

1,987,734,353

January

Note: Information provided by the SAT

3.1.14 Companies that began As mentioned, the benefits of the electronic invoice such as: cost savings (paper, warehouse, time, courier service, administrative expenses, etc.); productivity (security in Its support, reliabili足 ty, agiie processes, sending and receiving), and compliance with tax obligations regarding Invoices (localization process safe, fast and easy), have motivated companies to use the electronic invoice. The major companies that used the electronic Invoice as Initiators of electronic media in fiscal matters, among others were the following:^ Abastecedora Scorpion Aspel ATEB Servicios Chedraul Comercial Mexicana Comercial VH Control 2000 Egomexico ^nfasis Logistico EPI Commerce Estafeta Etiflex SAOV GIgante Grupo Avances

Http://www.amece.org.mx/amece/

Grupo Corvi Home Depot IMSS Indiciums Solutions Intermec Kaltex Levicom Liverpool Motorola Mundo Logistico Net Logistik Pegaso Tecnologia Soriana W al-Mart de Mexico


3.1.15 The Electronic invoice in the world^ In Latin America as in Europe, the electronic invoice takes an increasingly important role in strengthening the reductions in administrative burdens, have more efficient relations company-client, business-business, business-government, and strengthen the areas of control and risk modeis to reduce gaps of tax evasión. In Europe, the electronic invoice has taken such significance that on July 2010 the European Commission adopted the directiva 2010/45/EU as a way to reduce administrative burdens and pro­ mote the competitiveness of their companíes. By this concept, they estimated a cost reduction in the next 6 years to around 240 billion Euros, concentrating efforts on small and medium-sized entities.

^

Leaders

Developing m

Average

Left behind izzi

Source: E-Invoicing / E-bilting International Market Overview & Forecast,Bruno Koch, EXPP (http:// www.expp-summit.com)


%

Chapter 4


Comments Making a recapitulation of the provisions applicable to the CFD since January 1, 2011, are as fol足 lows and only stayed in place tlie CFDI since the beginning of the year 2014: Until June 30, 2011, there were five forms of verification: a)

Paper by printer.

b)

Paper with the two-dimensional bar code.

c)

CFD in modalities of authorized providers of CFD and own means and

d)

CFDI.

e)

State banking account.

The transactions fewer than two thousand pesos could be supported with paper invoice, by in足 serting a safety device called "Two-Dimensional Bar Code". The limit of the two thousand pesos was determined according to the Law of the ISR that indicates that the operations over that amount must be paid by check or electronic funds transfer. Also, taxpayers than in fiscal year 2009 have obtained less than 4 million pesos revenue, may issue invoices with the same procedure regardless of the amount. The SAT must find mechanisms that allow him to control the issuance of printed invoices with the two-dimensional bar code, as well as to minimize the risk of printed invoice are cloned using a scanner; as already mentioned in the corresponding chapter, you can print the invoice with the two-dimensional bar code directly to the printer of the taxpayer or through a printer. It is important to mention that the CFF does not provide a penalty for failing to print a paper copy; however, the printed receipt must be available in audit reviews. Before moving to the new scheme of CFD, it is important to note that in the diagram above the SAT had a control of paper invoices issued by taxpayers, as the authorized printer requested folios on behalf the taxpayer and informed the SAT on the use of them. With the new scheme, the folios request now shall be made by the taxpayer, but this requires having the FIE L


Also, the new schenrie, removes the requirement for the taxpayer to report monthly to the SAT on the CFD issued, the previous foregoing as it every time when generating these invoices, should be validated Its issuance. From 2002 to December 2010, have been approved 21 billion folios on paper, while the number of taxpayers that in one or several occasions have requested to issue an invoice in paper are around 6 million. From 2005 to 2010 the CFD works on its own or through third parties. At December 31, 2010, the following data were available: a)

32 Authorized providers which will have to move to the new scheme.

b)

There are 221 thousand taxpayers in the CFD scheme, of which 65% are corporations.

c)

There are 1.133 million registrations in the FE scheme.

The goal of the new schem e is to enable the generation, processing and storage of the CFD and the advantages of using the CFD are the following: a)

Ensures an important certainty important regarding the identity of the issuer, as it is linked to the FIE L

b)

Offers information integrity. Once the information of the CFD is encrypted electronically and is unforgeable.

c)

The SAT can make the direct link between the issuer and the document or transaction.

d)

It facilitates SAT control acts and avoids unnecessary hassles to fulfilled taxpayers, as will have the information with the provider validation.

e)

Reduced costs of operation, protection and storage, shipping, reproduction or review of documents, as well as accounting times in recording transactions, in inventory counts, in collection.

f)

Reducing frauds, both in the issuance and reception.

It is important to note that the current CFD will be able to be used through authorized providers as of June 30, 2011, while the CFD by their own means can be used for a longer period. In the current CFD scheme, the taxpayer requests the SAT stamps and folios; with the new scheme will only request a stamp which encrypts the information and instead of sending it to the taxpayer must send it to the authorized provider of certification (PAC) so that it assigns the folio and also seal the electronic file, being sim ilar to validate transactions with credit cards. It is important to note that the concept of the authorized printer disappear as of January 1, 2011.


The docum ents served as tax receipts to support them as authorized deductions, referred to in rule 1.2.10.3., such as: (i) airline tickets; (ii) debit notes to travel agencies or to other airline; (iii) passenger tickets issued by ground transportation line; remain in effect, however, the Audit area of the SAT Is considering their update also with the general rules. The option of issuing CFD by own means of his own, was in effect whenever will request stamps and folios, although it will begin to be bilied at a later date. Meanwhile, the AMECE, G S l Mexico today, revealed a study in the year of 2007, in which the cost of cost o f the administration of a paper invoice was approximately 152 pesos, with the CFD these cost were reduced in many cases to more than 80% of these costs to go from 162 to 24 pesos and now with the CFDI few pesos or cents. It is important to highlight the reasons to modify the scheme of paper invoices by the CFD and now by the CFDI that mainly for the following reasons: a)

To fight the apocryphai invoices (38 thousand million invoices evasion by definition).

b)

Have the assurance of the validity of the documents.

c)

The protection of the environment {per each miilion of printed invoices requires a logging of up to 60 trees).

Finally, itshouid be noted that in order to expedite and make more efficient the submission of ap­ plications and deadlines for returns, the SAT launched a program for applications for contribution refunds, are submitted on the Internet. The administrative rules governing the new are the scheme corresponding to Chapter 11.2.2 of the RMF containing among other concepts: •

Preioaded data relating to the fiscal address, tax return in which was stated the credit bal­ ance and bank accounts for the deposit, among others.

In the VAT tax returns, is no longer requested the submission of magnetic media.

Elimination of the presentation of the partnership agreement, powers of attorney, official identification, etc., since signing the process with the FIEL, it is understood the validity and accredited personality of the taxpayer.

Will include all the process, returns and notices to SAT through electronic means such as this will be done very soon with the auditor's tax opinion ton he Opinion Prosecutor on stock sales.

Elimination of the presentation of 32 and 41 formats.

In a second phase of the program shall develop mechanisms to systematize the processes related to the review and opinion of the returns.


This has the acceptance and success in providing information and documentation electronically for taxpayers and expedites tax procedures. During the period 2010-2012, the requirements of the tax invoices, as w/ell as the characteristics of the different means of billing had various modifications, which were released through reforms to the Tax Code of the Federation (CFF) and the issuance of miscellaneous tax resolution (RMF) and its several modifications. The printed invoices through establishments approved by the SAT concluded its validity on De­ cem ber 31, 2012, so from 2013 should not be used as support documentation of any operation. Regarding the printed with two-dim ensional bar code (CBB) since 2011, when this scheme began its validity, only had been applicable to the following taxpayers: •

Those whose taxable income from previous year is equal to or less than $4,000,000.00.

Those who begin operations may exercise the option if and when they deem that will earn income up to that amount.

Resulting from the high number of taxpayers who opted for this scheme, the federal treasury au­ thorities decided to modify the requirements in order to reduce the number of taxpayers that use this type of receipt, so that from 2014 this schem e will only apply in the following assumptions: •

Individuals and entities that have stated in the annual income tax return (ISR) of the last fiscal year accrued income equal to or lower than $250,000.00.

W hen the taxable Income exceeding this amount, taxpayers will not be able to reissue this type of invoices in subsequent years.

Taxpayers who initiate activities may not Implement this option.

Provisions from 2014 As of January 2014 the CFD scheme concludes its validity, so that all taxpayers that issued it invari­ ably will have to migrate Its invoices to CFDI. The CFDI schem e is the most current and modern, and it is intended for most taxpayers to use It. Since 2012 there is an option not to hire the services of a provider of certification provided that the CFDI is generated by the tool: "Generation service of electronic invoices (CFDI) offered by the SAT", which is located on its website.


As of June 2014 are 78 PACS companies authorized by the SAT. In summary, as of January 1, all the entities should be issuing digital tax invoices by Internet, without any exception. in the same way, they must issue electronic documents for payroll receipts and for tax with足 holdings receipts made; however, by the transitional article of the miscellaneous tax resolution, the entities may choose to defer the issuing of payroll receipts of and tax withholdings receipts through the new electronic scheme, from January 1 to March 31, and will be required to issue (the corresponding CFDI), for all payments and deductions made in that period. For its part, also all individuals must issue CFDI for its operations, as well as for payroll receipts for their employees and for the tax withholdings receipts. Those who to date have not done so, they should do it as soon as possible since the tax authority do not expect to grant an extension or extend the time for its compliance and the obligation for the obligation persists and is mandatory Individuals, who have decided to join the tax incorporation tax (RIF), were have not been required until March 31, 2014, to issue CFDI for payments that were made for wages and the provision of subordinated personal services, as well as the tax withholding returns to be issued on the indi足 cated period.


r

Chapter 5 %


Conclusions and Reconnnnendations The reporting process should be stable, objective and verifiable; it is a basic aspect for a proper accounting, organized and timely which allows the preparation of correct and efficient financial statements. This process of information and the resulting accounting records can be brought into computer systems to comply with the provisions of the Financial Reporting Standards. The accounting of a company is based on the generation of information obtained from the docu­ mentation that Is received from third parties, as is the case of acquisitions, In which it issue, such as the invoices for their sales, and In which generates internally by the calculations and determ i­ nations of figures that do not correspond to a Income or expense In cash or In credit, but that generate an accounting record. Account'ng can be carried into computer systems only complying with the provisions of the FRS, which can be applied the rules and Audit Standards and Proce­ dures and Assurance Standards. Generate and have the accounting, based on the FRS Issued by the CINIF, and now with Interna­ tional Financial Reporting Standards (IFRS), with all its supporting documentation both internal and external, processed In electronic media in an appropriate manner, allows to have an orderly accounting, accurate and timely, which enables you to comply with all tax requirements for the due performance of the direct and indirect taxpayers obligations. The original documentation that Integrates accounting causes problems of physical handling and makes hard a proper guard. The digitalization of the required accountant and fiscal docum enta­ tion represents a good opportunity to use cutting edge technology with a reasonable financial cost and Increasingly accessible, since this alternative Is a preventive measure of risk, allowing adequate safeguards for the information. Have all the documentation electronically helps and It also contributes to have all the Information that the SAT requires, both to review the operations of the contributor as to verify compliance with their tax obligations, which are essential for the Integration of data from all the informative and paid returns which is required to submit, so it results In a real contribution to the authority, a simplification for the taxpayer and a safety for the auditor who reviews and gives an opinion on the reasonableness in applying International Standards on Auditing (ISA), including specifically the presence in the physical Inventories, which for obvious reasons the authority cannot verify. The digitization of fiscal documentation, according to the legal provisions, represents an addition­ al option for using cutting edge technology. The microfilming process is, today, obsolete, being


the digitization of documents the most viable alternative to comply with tax obligations and, on the other hand, in order to save financial resources in the costs and expenses of the taxpayers. The original docum ents of a tvi/elve month period for w/hich it is submitted to, or should have been submitted the annual tax return, must be retained in the fiscal address of the taxpayer, having been recorded, at least, until the date of submission of the next annual return. However, it is suggested that the documentation is stored until the presentation of the corresponding au­ ditor's tax opinion for that period. Similarly, there is the obligation to keep the original (paper) until become extinct the verification rights of the tax authorities, as are those for reviewing the acquisition of investment property in fixed assets, customs, the ownership or use of vehicles tax, the documentation related to social security contributions and tax returns, among others. It would seem that the digitization of docum ents is a procedure which involves detail work and investment of considerable time, as it should be reproduced practically all and every one of the receipts through the character reader (scanner). However, it is also true that offers the great advantage of elim inating a large part of the original documents, preserving only the optical disk, compact or magnetic tape, thereby making the possibility of freeing storage spaces in the offices and warehouses, improving efficiency in the m anagement of the accounting records, and reduce costs and expenses, including safeguard insurance, custody and possible claims, to ensure the physical existence of the papers. This alternative is also a preventive measure that allows companies to safeguard great part of its accounting on paper at the risk of catastrophes or disasters, both accidental as force majeure events, which, unfortunately, have been appear and presented with increasing frequency in re­ cent years. This cybernetic information can also be sufficient and appropriate evidence with the necessary fiscal validity. It is important to highlight the importance, nowadays, have the computer supports due to in­ creasing in volume and complexity of human activities, such as informatics, microfilm and m ag­ netic files, which are more practical than traditional systems. This has caused that, in the tax law, several legal provisions that refer to electronic media have emerged, such as those relating to the payment by electronic transfer, the referenced payment, based on computerized accounts, and the presentation of tax returns via internet, which regulate the way to be done by taxpayers, so that the authorities grant them probative value, which, without a doubt, has an effect on the legal certainty for taxpayers and the possible use as evidence before the administrative and judicial authorities. Keep documentation In electronic form helps and contributes to have the Information In the necessary tax forms, for the benefit of both the taxpayer and the tax authority. Six years ago It was suggested that will be Incorporated into its control the auto-billing through of an authorized third party, which took place, in the same way and became mandatory as of May 1, 2009, to approximately 1.250 companies, with the tax changes for 2010 Increased to more than 5 million and subsequently with the applicable rules the universe for 2011 was reduced by approximately 275 thousand companies, for the 2012 were close to 320.000 and in 2013 came to nearly a m il­ lion, at the start of the year 2014, now m andatory for all. The universe is for almost all the formal economy.


An important challenge was without doubt that from January 1, 2011 the companies were been added to the already required to use electronic invoices, were those that were running out of pa足 per invoices or expiring until December 31, 2012 as final date for their use, in 2013 with the CFD and now invariably in 2014 with the CFDI. From fiscal year 2006, the main retail chains of our country started the programs because they represented advantages to adopt the FE within their business practices, recognizing all its opera足 tional and administrative benefits. However, it Is appropriate to mention that, to take the decision to use FE, taxpayers must know the necessary infrastructure required to issue an CFD, and now CFDI and identify through a "Diagnosis" which processes they lack and if is necessary to complete or complem ent their infrastructure, such as can be, among others, the ability to use the informa足 tion, incorporation of information through text files, the time required for its implementation, as well as the desired control the company will want to have on the solution in the management of the application from its facilities including the own addenda. Given the importance that currently have the computer storage media as an Indispensable tool to handle the high volumes of operation of the companies, the related legal and tax provisions have also been updated in several ways, so that now there are certain requirements for the use of electronics for the due performance of many tax obligations. Notwithstanding the above, certain adjustments are still being needed in issuing rules to facilitate and support its use. The FIEL is personal and not transferable, therefore the individual is directly responsible for what is done with it, so it must not under any circumstances share, lend or deliver to any person under any way, for the personal responsibility that represents to the sole owner of the FIEL. The emergence of the FIEL, coupled with the possibility of issuing invoices for sale through FIEL, makes it easier for taxpayers not only carry out their operations more readily decreasing the dis足 putes between the parties, but also allows the authority to have a better control and monitoring of them. Therefore, it is essential and necessary for the current tax rules incorporate the benefits of technology to digitize the accounting to reduce significant administrative costs to taxpayers and thus give a greater degree of security to the treasury in terms of its veracity of the digitized and in Its compliance in time and form of the required tax obligations. Having all the information required by the SAT in electronic form to review the operations of the taxpayer, and verify the compliance of their tax obligations, the opinion, the financial statements for tax purposes issued by a registered public accountant in computer systems, must give greater agility and accuracy to the audit work, by the General Administration of Federal Tax Audit, proving indispensable updating of the legislation and the issuance of administrative simplification rules necessary that apply to them. The adequacy of the opinion took place for the years ended December 31, 2010 to 2013, to the opinion of the future should be updated in their presentation and information scheme, as well as in the computing platform issue of the Tax Administration Service that must be in a continuous update, and that when auditing the AGAFF should not request as evidence of the work carried out paper copies, nor by the company, nor of the CPR from the year 2014.


It was crucial the update and coordination of the tax provisions that endorse the elimination of the paper as formal evidence to verify an income, an expense or an investment, and its validity In the verification process in compliance w/ith the tax obligations. Once there is the possibility that all taxpayers have access to the digitalization, it is essential to issue precise rules and technology to be available to all, for its application which should have the concept of security and simplification. The Ministries of Commerce, Finance and Public Credit, of the Superior Audit of the Federation, as well as the Instituto Mexicano del Seguro Social, must accept and harmonize the electronic information required to standardizing the basis of an adequate and secure application, and the legislators should know and promote the use of electronic information systems with the latest technology, changing day to day taking advantage of the implementation of international best practices in audit and supervision. The possibility of Issuing fiscally valid invoices in electronic form and the use of the "advanced electronic signature", are instruments that allow taxpayers to operate with greater efficiency, and to the tax authority will give greater security on the control of operations, making easier the supervision in general, following up the recommendations of computer security of electronic documents, issued by the Organization for Economic Cooperation and Development (OECD). Besides the benefits of the elimination of the paper and optimal use of IT, it Is noteworthy that this proposal is a response to the call of the present Federal Government, which has established different policies to encourage saving paperfor the benefit of our environmentand its conservation. The environmental cost that represents to cut down thousands of trees to produce the audit documents and evidence of a tax buy and sell transaction or the provision of a service than ever because of its economic relevance of what represents, is not going to be reviewed or audited, so that it is cruel today for our already very beaten environment. The decision to enter the world of digital tax receipts, for all the individuals and companies in 2014, represents a major challenge for the SAT to disseminate, publicize and facilitate all the pro足 cesses of incorporation to the CFDI. It is of the utmost importance to fulfill in time and form with the provision relating to the use and verification of the FIEL, and the responsibility that represents to the individual as legal represen足 tative by the sanctions and onerous even corporals as of 2011 came into effect, in the case of tax fraud, and the m andatory use of the CFDI as of 2014. In the auditor's tax opinion, the SIRRED represents a vital tool for the authority, which contributes to have fiscally audited the most important entities, corporations and individuals of the country in terms of monitoring compliance with their tax obligations, its supervision the tax collection that this represents. It also gives confidence to the CPR with the presentation of information through electronic means and to demonstrate the certification of the digitizing invoices to these taxpayers, who individually had to use this advantage.


To comply with the provisions of the Presidential Decree published in the Official Journal of the Federation on March 30, 2012,2013 to present in 2014, taxpayers who are required to audit their financial statements by authorized public accountant In accordance with the provisions of article 32-A, section I of the CFF and choose not to subm it the auditor's tax opinion, should present alternative information to the opinion through the SIPIAD (system of presentation of the alterna足 tive information to opinion). Resulting from the change to the CFF regarding the removal of the option of submitting an au足 ditor's tax opinion In 2014, both the SAT an the AGAFF as the IMCP will have seriously interfere and as soon as possible In order to work in a new fiscal report 2014 to present in 2015 and later, with benefits for the three parties involved; Taxpayer, SAT and Certified Public Accountant, that is to say, they should also seek to give a simplification to the taxpayer, It Is useful, for the SAT in their oversight roles within the risk analysis and for the feasibility of Inform the conducive by the Public Accountant, based on tax provisions and in the criteria of that the authority itself makes known as reported by the Head of the SAT, Lie. Aristoteles Nunez, in an Interview published In the edition of the Public Accounting journal number 500 April, 2014 along with the President of the IMCP Luis Gonzalez Ortega. It Is important that taxpayers who have been located in any of the assumptions for issuing printed tax Invoices until 2013, in addition to have with a valid FIEL certificate and have requested the allocation of folios to the SAT, should print an original and a copy of the tax receipt that contains the two-dim ensional bar code generated by the SAT. It Is important to mention that until December 31, 2013, the documentation with the two-dlmenslonal bar code (CBB), did not represent a inviolable document in Its constitution, so as of January 1, 2014 only have the tax validity the CFDI. The physical printings of digital tax Invoices may be made by own means (PC and printer). The companies that issued their CFD In the terms of the preceding paragraph should have migrat足 ed to the new scheme of CFDI for the year 2014. Migration can be done, either by Its provider, If he has the authorization as a PAC or through another provider with the authorization issued by the SAT Taxpayers, who started Issuing electronic invoices from January 1, 2011 or at some later date, are required to adopt the new CFDI scheme using, for purposes of obtaining the double stamp, through the services of a PAC. Under this scheme, the taxpayer must acquire, lease, develop or hire the services of a third party to issue their electronic invoices, which must in turn be forwarded to a PAC, who will validate the compliance of the rules published by the SAT and in any case, apply a double digital stamp and assign a tax folio called UUID (Universally Unique Identifier) of 36 characters. For the purposes of making a CFDI deductible, taxpayers must validate the electronic invoices received by their providers using the validation service (CFD for 2013 and CFDI for 2014) In which


they must enter one by one the invoice details to validate or use the mass validation tool (CFDI) available in the Portal of the SAT. It is also widely recommended the use of the addenda in the operational and administrative process for effective saving In time, elimination of errors, determination in reconciliations and clarifications, thus helping the process of sustainability in the value chain. The use of the addenda in combination with the CFDI is very easy to implement an electronic process of reception and billing. After performing a FODA analysis and to determine the strengths and weaknesses of using the addenda, translates without a doubt, in a decrease of costs and ex足 penses, also in these processes, as well as the time required In its implementation, which largely justifies that the project "adoption of the addenda" is performed as soon as possible, thus avoid足 ing deferral in its use. In order to comply in a tim ely order and form with these new provisions in CFDI, the SAT, should help to obtain the necessary Information to enable you to have the RFC data with differential code and CURP, with information of the Birth Certificate for its proper determination. Recommendation to update and subm it the obligations of CFDI in sale and provision of services as well as in the payroll stamp to avoid making mistakes that causes fines and tax payments. Due to the impossibility of expenditure deductions and, if any, tax credit. As has been noted throughout this work, the Attorney General's Office for the Defense of the Taxpayer has incorporated from the beginning of Its duties in September 2011, the Information and Communication Technologies for the sake of optimize and streamline its institutional activity, with the ultimate goal of having the taxpayers to access the internet more easily to their services. This time, it have been detailed two technological mechanisms at the service of the taxpayers: the contact form that serves as the basis for the provision of the advice service and guidance, and the calculator, which estimates the update and interests of ISR returns for the fiscal year 2012, by the Prodecon that soon they will have the applicable to tax refunds for 2013 applicable for the year 2014. Thus, Prodecon recognizes the benefits that provide the use of information and communication technologies, sharing its information of retained earnings, not forgetting that there is still much to be done on the matter In the medium and long term. In the medium term, the Attorney's Office provides for a restructuring of its website, to equip you with innovative technological tools that are useful for all taxpayers. In the long term, one of the goals of the Prodecon is that in addition to receiving through the internet requests for advice, is to lead, from the beginning and until its conclusion, all the pro足 cedures of counseling services of complaints and claims, as well as the representation and legal defense to the greatest extent possible, now including also the conclusive agreements.


In summary, it is intended to use the tools that provide the new technologies, to improve the ser足 vices offered, provide access to all the taxpayers and make the Prodecon website a real window of effectively and efficiently service to the taxpayers. The filing of a tax trial by the Court it highly recommended the presentation by the electronic me足 dia format, through the "Judgment Online Service". To take advantage of the benefits of sim plici足 ty, paperless and thus, participate in the speed of the resolutions by the TFJFA itself with obvious benefits for the plaintiff, the authority and the court itself. This book contains all the applicable provisions as of June 2014; however, there could be changes in form for some of the taxpayers in the next few months by the Legislature, as well as by the administrative fiscal authority and/or by the judiciary during 2014 and will be applicable from its publication. Derivative from the changes and updates in this whole new procedure for the use of electronic media in the field of taxation, and having the purpose of keeping you updated on this matter of "electronic media in fiscal matters" and in particular on the topic of Digital Tax Document you may do so through the following websites, where you can also view and verify these updates for the adjustments and changes made: www.aef.org.mx www.amexipac.org.mx www.deloitte.com.mx www.imcp.org.mx www.imss.gob.mx www.podecon.gob.mx www.sat.gob.mx www.tfjfa.gob.mx www.telmex.com.mx


%

Acknowledgments


I appreciate the collaboration for this sixth edition of Electronic Media in fiscal matters. Paper less, by June 2014, in the collection of information for the use and utilization of the Digital Tax Document and Electronic Media (CFDI) in the Mexican tax issue: M.C.I. Sandra America Rodriguez Pena

SAT

Relations and Dissemination

Lie. Guillermo Vails Esponda

SAT

Taxpayer Services

Lie. Fernando Martinez Coss

SAT

Electronic Media Affairs

Lie. and C.P. Claudia Covarrubias Ochoa

SAT

Central Adm inistrator of Tax Services of the Taxpayer

C.P. Minerva Hernandez Ramos L.R.I. Javier Vega Flores

PRODECON

Attorney

Amexipac

President

MBA Daniel Aguinaga Gallegos

Deloitte

Sustainability

C.P.C. Arturo Vela Rios

Deloitte

Transfer Pricing

L.C. and E.F. Arturo Morales Armenta.

IMCP

Investigator Prosecutor

C.RC. Jose Antonio Suasnavar

Deloitte

Social Security

Lie. Raul Luna Rodriguez

Deloitte

Electronic Invoice

Lie. Patricia Rea Collazo

Deloitte

Sustainability

C.P.C. Eduardo Coeina Hernandez

Deloitte

Security in Electronic Media

Thank you for your comments, suggestions, recommendations and your unconditional friendship.


Bibliography Asociacion Mexicana de Estandares para el Comercio Eiectronico, AMECE, Ahora G Sl. Bastidas Yffert, Maria Teresa, El costo de ventas: principales implicaciones contables, fiscales y legates, Institute Mexicano de Contadores Publicos, Mexico, 2005. Calderon Medina, David, Comercio electronico e impuestos, Dofiscal Editores, 2004. Federal Civil Code. Commerce Code. Tax Code of the Federation. Comision del IMCP ante Administraciones Generales de Fiscalizacidn, Institute Mexicano de Contadores Publicos A.C., La que usted debe conocer acerca del dictamen fiscal, tercera edicidn Institute Mexicano de Contadores Publicos, Mexico, 2007. Consejo Mexicano para la Investigacion y Desarrollo de Normas de lnformaci6n Financiera, Normas de Informacion Financiera, Institute Mexicano de Contadores Publicos, Mexico, 2007. Exposici6n de motives del Ejecutivo Federal para 1981,1984, 2007 y 2014. Fundacion de Investigacion IMEF y Deloitte & Touche, Administracion Integral de Rlesgos de Negocio, Primera edicion, Mexico, D.F., Institute Mexicano de Ejecutivos de Finanzas, A.C., 2003. Ibarra Hernandez, Victor Hugo, Medios electronicos en el Derecho Fiscal, Defiscal Editores, Mexico, 2006. Institute Mexicano de Contadores Publicos, A.C., Colegio de Contadores Publicos de Mexico, A.C., Servicio de Administracion Tributaria (SAT), Solucidn Integral para la Administracion Tributaria, Primera edicidn, Mexico 2007. Institute Mexicano de Contadores Publicos, Normas yprocedim ientosdeauditorfay Normas para atestiguar, Institute Mexicano de Contadores Publicos, Mexico, 2007. Institute Mexicano de Ejecutivos de Finanzas, Plataforma SAT. Antecedentes, bases, fundam ento y apHcaciones, Mexico, 2006. Income Tax Lavi/. Perez Luge, Antonio Enrique, Ensayo de Informatica Jun'dica, Distribuciones Fontamar, Mexico 1996. Presentacienes de AMECE ahora G Sl. Presentacienes de Pegaso Tecnolegia. Reglamento del Codigo Fiscal de la Federacion. Fiscal Miscellaneous Resolution 2014. Vicepresidencia de Relacienes y Promocion Institucional del Colegio de Contadores Publicos de Mexico, A.C. La prm a y la factura electrdnicas: entorno jurldico, fisca l e Informatico, Institute Mexicano de Contadores Publicos, Mexico, 2004. Comision Representative del IMCP ante las Administraciones de Fiscalizacidn del SAT, Lo que usted debe conocer acerca del Dictamen Fiscal; 7ta. edicidn, IMCP, 2012 y 2013. Macias Valadez, Francisco, D eclaracionesy Pagos. DyP. Guia Prdctica 2013, Ira. Ed., IMCP. Comision Fiscal Regidn Noroeste, Regimen fiscal del sector prim ario Agricultura * G anaderta â&#x20AC;˘ Pesca â&#x20AC;˘ Silvicultura, Ira. Ed., IMCP, 2011. Presentacidn del Lie. Fernando Martinez Cess, Administrador de Operacidn de Canales de Servicios del SAT. Actualizado a 2014. Web SAT, www.sat.gob.mx. Informe Tributario y de Gestidn 2013. Secretana de Hacienda y Credito Publico. Las Finanzas Publicas y Deuda Publica 2014. Secretana de Hacienda y Credito Publico.


The Academ y of Fiscal Studies (Academia de Estudios Fiscales de la Contaduría Pública, A .C .) conducís analysis and research In the fiscal area. Workin^ together with the Mexican Institute of Public Accountants (Instituto Mexicano de Contadores Públicos, IMCP) show the evolution of Electronic Media in Fiscal M atters, Paper Less with understandable concepts. This paper has been prepared by one of its form er presídents: The C .R C ., R C .F i. and L.C .I. Francisco Macías Valadez Treviño who presents the possibility of eliminating the role of accounting processes, tax and auditing since 2006. With the accounting and tax regulations is now a fact. This book is a useful tool in the use of electronic means for the optimization of tim e and money, offering answers and conclusions to comply with tax requirements. Is the focus of someone who has worked in favor of evolution responsible for the accounting profession. The goal is to reduce the environmental impact to our planet.

The author has always given all royalties from his books to the Mexican Institute of Public Accountants, renouncing any economic benefits for him.

This work is th ere fore, amust-read in the history of success as gam ble on the innplennentation of technology fo r the benefit of taxp ayers, making easier to fulfií their tax obligations. Congratulations. -Aristóteles Núñez Sánchez Head of the Tax Adm inistration Service (M éxico)

I predict that the reader will find useful tooís to update their know ledge in the fieid of taxation procedure, enriching their professional work and academ ic activity. -Manuel L. Hallivis Pelayo M agistrate and chairman of the Federal Court of Fiscal and Adm inistrative Ju stice (M éxico)

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Electronic Media in Fiscal Matters  
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