Here are the three most important things you need to know about Mexico’s mandatory CFDI changes, due to come into play on the 1st of January 2014. Be sure not to miss our webinar on the 26th of June where you can ask the burning questions that matter to your business.
1. It’s going to become universal really quickly
Every invoice between companies that have a domestic Mexico Tax ID and revenue over $20k will have to comply with the new standard in 2014. For now, this doesn’t extend to cross-border invoices but it’s easy to see that knock on effect as electronic solutions become the new status quo. What’s important in that scenario is that you’re on a platform with interoperability so standards don’t cause headaches.
2. Mexico’s CFDI is about data, not documents
CFDI is all about XML. From your accounting system right through to the digitally signed copy you must share with your buyer, the simplest way to make the switch is create a clear electronic workflow.
This doesn’t mean PDFs and emails, this means let the data remain as data. XML is designed precisely to achieve this and business platforms (like Tradeshift) are the middleman that help it remain in its most efficient form. From the “Timbre Fiscal” or Sello government seal, to the requirement to store documents for five years, the details become simpler this way.
3. There’s an easy way and a hard way
Option 1: Leaf through thirty-something pages of Mexican legislation in PDF form then reinvent the wheel trying to implement it for your business. Option 2: Seek help.
We’ll be honest with you, the biggest thing that has helped us bring you this advice is the work and knowledge of our great partner, Invoiceware International. In regions like Latin America, nobody keeps a finer eye on changes like this and there’s no easier way to gain confidence about your compliance challenges.
But the real point here is: find partners who have successfully managed these kinds of projects before. Hopefully this article will have made you realise why it’s important and how the situation is changing. But there’s no better way to navigate the journey ahead than to collaborate with the guide that is forging the path.
If you want to learn more, join us our webinar with Invoiceware International on 26 June or get in touch at email@example.com and ask any questions you have about the changes.