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Index 17th Edition
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TAX CULTURE
Diversification of the digital tax inbox in 2017
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08
DID YOU KNOW?
TAX TECHNOLOGY
New v3.3 version of the e-invoice.
From e-invoicing to e-taxation
14
NOVELTIES
First resolution of amendments to the miscellaneous resolution
04
08
16 SE
29
Commercial notary publics, services and benefits
18
28
Payment supplement
Statistics of the taxation industry
24 SAT
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SAT
Annual tax return: Submit your tax return without e.signature
TAX TECHNOLOGY
16
26
E-invoice: essential input for pre-filled tax returns
TAX TECHNOLOGY
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INTERESTING FACTS
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DIVERSIFICATION OF THE DIGITAL TAX INBOX IN MARIO ÁLVAREZ IOFACTURO
2017
As already known, Mexico is one of the leading countries in E-Invoicing worldwide. The project that started in 2005 and evolved until becoming mandatory and the decentralized nature of the PACs has served as a model for other countries in the region. The launch of the Digital Tax Inbox was, without doubts, something revolutionary, since the Mexican Tax Authority was the first of its kind globally with an E-Invoicing model that gives taxpayers access to all documents through its website. However, we suggest applying the same logic with which the certification was decentralized and allow its PACs to be able to access the Digital Tax Inbox through an API on behalf of its customers, to present its information to taxpayers in various forms.
TAX CULTURE
Aside from generating additional income sources for the PACs, this motivates the e-invoicing industry in Mexico and we will start seeing smartphone Apps, user-friendly sites and a variety of types of products and applications as seen currently in the world of e-invoicing.
It is worth looking at Brazil to see what it is doing in this sense.
The amendment of the Fiscal Code in article 17-L opens the possibility for the Mexican Tax Authority to enable the use of the digital tax inbox for other authorities, and there is a possibility of increasing its potential even further, as for example, by interacting with bodies of the Ministry of Economy (Secretaría de Economía) to bestow e-factoring with the business nature it requires. The suggestions above only will enrich the e-invoicing model in Mexico and ratify it as a world-leading model and further encourage the tax inclusion in our country.
This could later be supplemented with the e-factoring initiative, which is gaining presence in the region and with the acceptance of the invoices. 4
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NEW V3.3. VERSION OF THE E-INVOICE V3.3 REGINA ESQUER VITAL
On July 1, 2017 the new v3.3. version of the E-Invoice will come into force; in this regard, there are a series of actions we recommend you to implement to prepare your business for this change. The following are among the most relevant changes: • 17 catalogues are included for the use of the CFDI. • 46 type validation rules are included: arithmetic, conditional and of congruence. • Patterns are defined for the large majority of the attributes. • The federal taxpayers registry (RFC) of the recipient is verified. • No negative values or concepts with a cero value are permitted. The first step to prepare your business for the migration to the new version of E-Invoicing is becoming informed of all changes involved. The Mexican Tax Authority has published a “Filling out Guide” on its website that contains information on the expected values for each of the attributes of the CFDI, as well as the validations and/or limitations each attribute has.
HOW TO PREPARE YOUR BUSINESS FOR THE MIGRATION TO THE NEW V3.3 VERSION OF THE E-INVOICE? If the PAC does not have the answer at the moment, it can submit it to the authorities to provide a later answer. An example of a scenario that could complicate the operation is when it is a common practice to include negative concepts in the CFDIs issued, which will no longer be allowed. You may also get started with the following activities to prepare for this change: • Validate the RFCs of your active customers. • Communicate with your active customers to familiarize them with the use of the CFDIs that you issue. • Associate the products and/or services that you offer with any of the 5,000 of the product and service catalog of the SAT, as well as with a code of the Unit catalog. • Ensure that the totals calculated by your current system do not present any arithmetic errors. • Review and validate the patterns defined for certain attributes: CFDI. Series, Concept. Description, Concept.IdentificationNo, Issuer.Name, Recipient.Name: Special characters such as: ”.”,”/”,”\”,”|”,”°”. will not be permitted. oConcept. Description: the length shall be limited to 1000 characters. Inform yourself in time and act so that you will be able to comply in due time and form. Communication with your system providers is of the utmost importance.
TAX TECHNOLOGY
Soon it will publish a question and answer section, as well as identified use cases, which assist you in understanding the implications of the changes. It is of the utmost importance that you are in constant communication with your system provider, as well as with the PAC that provides you with the certification service, so that they assist you in addressing specific questions and conducting the necessary tests in advance. Each company has its way of operating and therefore has its use cases of use that may be affected by this change.
It is important to map each scenario of your operation and identify how this new version can be used. If you identify any case of ambiguous use, we recommend reaching out to your trusted PAC, so it can assist you in defining its use.
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FROM E-INVOICING TO E-TAXATION Standard Audit File for Tax (SAF-T) IVĂ N VEGA STO
From the moment that our country decided to incorporate e-invoicing, the issue, receipt, and CFDI review process on behalf of the taxpayers, as well as the subsequent processing that the Mexican Tax Authority performs on the content of these has undergone an enormous evolution, going from the print receipt to the CFD and later to the CFDI in less than a decade, which in fiscal terms, in the history of our country, is a relatively short span of time compared to the amendments made to the VAT that took more than 2 decades since its creation.
DID YOU KNOW?
The natural step to follow, without doubt, will be e-taxation, in regards to which the first steps have already been taken with the introduction of E-Accounting, a mechanism through which taxpayers inform the Mexican Tax Authority of their accounting transactions and evidence of their registries through the association of the movements to their corresponding UUIDs in case of movements generated by accounts receivable or accounts payable, among other data of interest for the tax authorities.
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ARNULFO RAYGOSA STO
In addition to the e-invoicing process established in Mexico and in other countries, local and international efforts have been made in this regard to define what and how reports are made to the tax authorities. In the case of OECD member countries there is a standard that the organization has been working on for various years which permits not only preparing the report, revision and audit of the taxation locally by country, but also provides an international standard with which countries that entered tax receipt and refund agreements among each other, are able to exchange information under a shared standard, facilitating the transactions and calculations arising from these activities. The standard is titled Standard Audit File for Tax (SAF-T), and consists of a plain text file in XML format, with the same theoretical base on which XML files for E-Accounting are built.
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The area in charge of maintaining this standard is the CFA (Committee on Fiscal Affairs), by means of an international forum focused on tax administration, the FTA (Forum on Tax Administration), which has become an entity in which the heads of the agencies in charge of the tax collection of each country, both of OECD members and non-members, meet to identify, discuss and influence relevant global issues and develop new ideas to improve the tax administration in their countries and worldwide. The idea behind this standard is for taxpayers to provide the authorities with the details of their transactions with full transparency. This opening of information will allow tax inspectors to audit the transactions of taxpayers as they perform the same, having at their disposal line by line information of the transactions; for example, if Company A performs a transaction involving taxes with Company B, the auditor of Company B will be able to confirm if Company A has made the payment of VAT taxes before proceeding to make a refund of the same to Company B if the calculations would decide so. Evidently the information request at this level of detail and transparency is focused on promptly eliminating and detecting tax evasion.
SAF-T VS E-INVOICING Complete balance sheet
Annex 24
Accounts payable with master information of suppliers, accounting records, and copy of the invoices of suppliers (CFDIs Annex 20)
Annex 24 Purchase CFDI
Accounts payable with master information of customers (Annex 24 and CFDIs), accounting records, and copy of the invoices of customers (CFDIs Annex 20) Master records of product inventory and its movements In- and outflows of goods Accounting records of fixed asset, depreciation and amortization of the same
Annex 24 Sales CFDI
From the taxpayer itself
From the taxpayer itself
Annex 24
With a simple visual inspection of the list above it is easily inferred that generating an information extraction with this level of detail would represent a great investment of time and resources on behalf of the taxpayer, regardless of if there is already a basis to be able to perform it. Fortunately the SAF-T standard contemplates scenarios in which the country that decides to incorporate it, may do it fully or partially, and even use it to derive a local implementation. Assuming that the Mexican Tax Authority would decide to incorporate SAF-T in Mexico: What would an average taxpayer have to do? For starters, it must be determined up to which point the organization in question is able to issue a file with the structure and the content of information defined by the SAF-T. Based on past experiences with the instrumentation of E-Accounting, in most cases the companies process and store information in various systems, i.e., the transactions are registered in an ERP and the e-invoicing in another separate system or functioning as an extension/plugin of the ERP, either as part of the infrastructure of the organization or as a service leased on the cloud. Thus, it would be necessary to determine in the order of this variation, which information is at hand from the start, which information would be missing, and where it would have to be incorporated to perform afterwards its extraction and unification (if not able to obtain it from a single source).
Thereafter, a determination will have to be made on which actions should be taken to comply with the SAF-T. These actions must include the design and execution of a plan which goes from considering acquiring a product that already includes the generation of the SAF-T, or promoting that the infrastructure currently available at the organization is capable of extracting the required information and of preparing the file. In any of these two cases, the instrumentation project of these functions should consider the impact on the processes, the organization and the systems of the company. Last, but not least, an assessment shall be made on whether the current internal controls of the company and of its systems are capable of identifying errors in the information before publishing a SAF-T file to the competent authorities. Since there is a standard in the structure and content of the file (as with the current XML of Annex 24), prior validations can be made on the structure and content of the file generated, which would help to forecast if the authority would have any comments on the same before issuing it. How easy would it be to comply with the SAF-T with the elements currently stated in the Mexican laws in matters of E-Invoicing and E-Accounting? After comparing the elements requested in the nodes of the standard, it can be appreciated that with the definition made by the SAT for E-invoicing and E-Accounting a great part of the information requested is already at hand.
DID YOU KNOW?
However, this transparency has also a positive side for taxpayers, since in order to comply with the standard many accounting and administrative processes of the companies must be automatized; therefore, the compliance costs, the demand for human resources and the internal fiscal audit will be reduced. The prospect is that the data extraction and analysis required to constitute the SAF-T eventually causes it to be no longer necessary to separate the procedures of collection, the calculations and the later VAT refund.
Information requirements of SAF-T vs Mexican E-invoicing
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Description
AduitFileVersion
Identification of the SAF-T version being used
Dato fijo
CompanyID
Registration number of the Company
Dato interno
TaxRegistrationNumber
Fiscal registration number of the company
RFC
TaxAccountingBasis
Invoice Accounting, Cash Accounting, Delivery, other.
Dato interno
CompanyName
Company name of company supplying SAF-T
Asociado al RFC
CompanyAddress
Company Address
Asociado al RFC
• BuildingNumber
Number of the building
Asociado al RFC
• StreetName
Name of the street
Asociado al RFC
• AddressDetail
Address lines
Asociado al RFC
• City
City or main Town
Asociado al RFC
• PostalCode
Post Code or Zip Code
Asociado al RFC
• Region
Region
Asociado al RFC
• Country
Country
Asociado al RFC
Company / Division / Branch reference
Asociado al RFC
• FiscalYear
Company financial year
Balanza de comprobación
• StartDate
Company financial year start-date
Balanza de comprobación
• EndDate
Company financial year-end Date
Balanza de comprobación
• CurrencyCode
Currency Code (3 Char ISO) or local currency which accounts are audited in
MXN
Date of production of SAF-T
Dato generado
• ProductID
Software that generated the SAF-T
Dato Interno de la compañía
• ProductVersion
Software Version
Dato Interno de la compañía
• Taxonomy
XBRL Taxonomy being referred to in lead Code
De acuerdo al negocio
• HeaderComment
Comments on header file
Dato Interno
TaxEntity
DateCreated
DID YOU KNOW?
The data required in the header of the SAF-T file may be filled nearly completely with the information requested by the SAT and with the information required to generate the XML file of the trial balance of Annex 24, the exceptions are the Tax Accounting Basis, which requires identifying the method with which the accounting and Taxonomy are performed, which would involve identifying the XBRL standard (eXtensible Business Reporting Language) with which the classification of the accounts would be made and which would depend on the type of business that is preparing the report. Of course, this would imply additional work for the taxpayer, in order to identify and generate the report according to the taxonomy corresponding according to the line of business of the taxpayer. If we also compare the information requested for the balance in the section of master files of the SAF-T with the information requested in Annex 24 for the catalog of accounts we can appreciate that it is practically complete.
and “ E-invoicing the process of
Element of Mexican E-Accounting or E-invoicing
issuing, receiving, and reviewing the CFDIs of taxpayers have undergone a tremendous evolution, transitioning from the print receipt to the CFD and then to the CFDI.
SAF-T Heather • AccountID
GL Code for individual account
CatálogoCuentas.Ctas.NumCta
• AccountDescription
Name of individual GL account
CatálogoCuentas.Ctas.Desc
• AccountType
Type of account- Asset/Liability/Sale/Expense
CatálogoCuentas.Ctas.Natur
• LeadCode
XBRL Taxonomy Code
Código XBRL
• LeadDescription
XBRL Taxonomy code description
Descripción XBRL
*OpeningDebitBalance
Opening Debit Balance
BalanzaComprobación.Ctas.SaldoIni
*OpeningCreditBalance
Opening Credit Balance
BalanzaComprobación.Ctas.SaldoIni
The taxonomy and XBRL description requested in SAF-T is similar to the definition of the mapping that the Mexican Tax Authority requires from the standardized catalog of accounts for the E-Accounting report with regards to the particular catalog of accounts of the taxpayer. The invoicing information, both of purchases and sales exists in its entirety in the Mexican CFDI, the few absences identified, are not related to the invoicing information or to the information of the transaction between the customer and supplier, but to the process through which they are managed at the organization. Along this line of thinking, those taxpayers with ERP systems would be able to incorporate this standard into their assets with the greatest ease, since a small taxpayer, or an individual, could hardly afford to have a system
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Element of Mexican E-Accounting or E-invoicing
Description
of this size and/or costs, either due to limitations in the necessary infrastructure or of human resources for the daily operation. However, as mentioned above, the standard offers the option of being used partially, i.e., not requesting the complete information, remaining at the disposal of the regional collection agency according to its needs; therefore, in the event that the standard is incorporated in our country, there would be an alternative for small and medium-sized taxpayers. As OECD member, Mexico participates in the analysis and definitions related to these aspects, and it should not be a surprise that we will soon will hear more in this regard; in fact, looking at the similitudes found, we would not be surprised to find out that the Mexican Tax Authority based the definition of the Electronic Tax Policy on the SAF-T.
In conclusion, it is important to mention that the OECD has a specialized Forum in the Latin-American region of the continent, the “Latin American and Caribbean Tax Policy Forum”, which was held in 2014 in our country. We should pay attention to this, since probably the definition, use and exchange of information of a fiscal and tax nature, internal of every countries, between boarders and for the transactions with countries with which International Trade Agreements have been entered, surely will be based or governed by the Agreements defined in such Forum, and this of course includes the SAF-T standard.
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“
SAF-T Heather
FIRST RESOLUTION OF AMENDMENTS TO THE MISCELLANEOUS TAX RESOLUTION ANTONIO ROMERO BUZÓN E
On March 10 of this year, the Mexican Tax Authority published on its website what appears to be the First Resolution of Amendments to the RMISC 2017. With respect to the progress informed previously, this document in contains the following novelties: 1. References to Mexico City. Its rule 1.10 states that:
“
The references made to the Federal District shall be understood as made to Mexico City and such situation shall not be considered a violation to the tax provisions.
“
NOVELTIES
And second transitory article section II establishes that this will be applicable starting from January 31, 2017. 2. Credit balances of individuals in their annual tax return. Individuals may submit their annual tax return only with Password when: • When the credit balance is equal to or less than $10,000.00..
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• When the credit balance is greater than $10,000.00, and does not exceed $50,000.00, provided the taxpayer chooses an active bank account for wire transfers with 19 CLABE digits, which must be to the name of the taxpayer as account holder, from those pre-uploaded by the tax authority in the application to submit the annual tax return. 3. Individuals relieved from the obligation of submitting the 2016 annual income tax (ISR) return. Taxpayers that are individuals shall not be obliged to submit their annual income tax return for the 2016 fiscal year, in the following cases: • Their income resulted exclusively from salaries. • When applicable, they obtained income from nominal interest rates that did not exceed $20,000.00. • The employer has issued an e-pay slip in respect to the entire income from salaries.
4. Annual tax return by telephone. During the months of March and April 2017, those taxpayers whose income is exclusively from salaries, from a single employer and have a maximum of twenty-five CFDIs of personal deductions, may opt to submit their annual tax return for the 2016 fiscal year through the MarcaSat orientation telephone. The official publication of these amendments in the Federal Official Gazette (DOF) is still pending. Upon their publication in the Federal Official Gazette, the application of the amendments in the First Amendment Resolution to the Miscellaneous Tax Resolution will be official.
During the months of March and April, those taxpayers whose income is exclusively from salaries, may opt to submit their annual tax return for the 2016 fiscal year through the MarcaSat orientation telephone. A P R I L - M AY 2 0 1 7 | A M E X I PA C
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COMMERCIAL NOTARY PUBLICS, SERVICES AND BENEFITS JUAN HURTADO SECRETARÍA DE ECONOMÍA
When we speak of the Commercial Notary Public we are referring to an historic Institution acting as an aid to commerce, and which is nowadays represented by Commercial Notary Publics who exercise their functions with honesty, integrity and efficiency. The Commercial Notary Public is an Attorney-at-Law with a license from the President through the Ministry of Economy to exercise the functions established in the Federal Law of Commercial Notary Publics and its Regulations. The services provided for the benefit of the users are: • Legal advice.- Information on the options to conduct activities of a commercial nature. • Mediation.- Transmitting and exchanging proposals between two or more parties, providing advice on the execution or adjustment to any contract or agreement of a commercial nature. • Appraisal.- Estimating, quantifying and valuing property, services, rights or obligation submitted to its consideration. • Arbitration.- Dispute resolution at the request of the parties. • Public attestation.- Attesting to contracts, agreements and legal acts of a commercial nature, except for real estate, as well as various legal facts, such as the ratification of signatures, notices, requirements and other diligences in which he/she is authorized to intervene.
The benefits from requesting the services are: • Receiving personalized legal advice. • Freely agreeing upon their fees, while they have to indicate in the inside of their offices clearly and in a manner visible to the public, the updated fee of the main services they offer. • The option of contacting more than 400 Commercial Notary Public nationwide in the event of requiring legal advice, mediation, appraisal or dispute resolution, since the limitation of acting only in the jurisdiction for which they were licensed only refers to their functions as public certifying officer (fedatario público). • The obligation of becoming a member of the College of Commercial Notary Publics of the applicable jurisdiction. • The guarantee that they have guaranteed the due exercise of their duties by bond, security or mortgage. The Treasury of the Federation will be appointed as beneficiary to the same. • The confidence that the public instruments they grant, as established in the Federal Law of Commercial Notary Publics, are public documents that serve as full proof to the legal acts and facts executed.
The Ministry of Economy applies and monitors the due compliance with the provisions of the Federal Law of Commercial Notary Publics and its Regulations, with authorities to:
The Commercial Notary Public acts with the capacity established in the Federal Law of Commercial Notary Publics (Ley Federal de Correduría Pública) and its regulations.
“
GOVERNMENT
“
• Ensure the efficacy of the service they provide by safeguarding the legal security in the acts and fact in which they intervene. • Examine the persons who wish to become candidates to Commercial Notary Publics or those who wish to exercise as them, ensuring that they are persons with high professional standards and of recognized honorability. • Issue and revoke relevant licenses, while monitoring the actions of the Commercial Notary Publics and of the Colleges of Commercial Notary Publics, imposing sanctions, as applicable, according to the Law and its Regulations.
Without a doubt, in the event of requiring any service involving legal advice, mediation, appraisal, arbitration or public attestation, the Commercial Notary Public is the best option for a businessman. For more information:
www.correduriapublica.gob.mx
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PAYMENT SUPPLEMENT EMILIO BERNAL INTERFACTURA
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This supplement shall be incorporated into the CFDI issued upon receiving payments in installments, even in the case of loan transactions that are settled in full on a subsequent date to the issuance of the relevant CFDI.
TAX TECHNOLOGY
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Objectives of the supplement
Background As part of the 2017 Tax Reform, the Mexican Tax Authority (SAT) announced the Payment Supplement, which would come into force on July 1, 2017, and has its basis on rule 2.7.1.35 (issuance of CFDI for payments made) of the Third Resolution of Amendments to the 2016 Miscellaneous Tax Resolution.
• Simplify the model of payments in installments.
• Inability to know whether the invoice has been settled or not (VAT-related issue).
Currently the Mexican Tax Authority establishes the procedure for an e-invoice settled in installments, as follows, “this supplement shall
be incorporated into the CFDI issued upon receiving payments in installments and in the case of receiving the payment of the consideration in a single installment, which is not settled at the moment of issuing the CFDI, even in the case of loan transactions that are settled fully on a subsequent date to the issuance of the relevant CFDI.”
• Facilitate the reconciliation of invoices vs. payments, applicable to the certification of payments made in a single installment, when they are not settled at the moment of issuing the CFDI and even in loan transactions settled on a subsequent date to the issuance of the relevant CFDI.
PRE-SALE
• Wrongful cancellation of settled invoices. SALE
• Income duplicates in invoicing installments. • Issuance of invoices in loan transactions or those involving deferred payments in which the recipient of the invoice does not settle the agreed upon payment, and rather uses the invoice to deduct and credit taxes.
Procedure for the generation of the Payment Supplement PAYMENT
E-invoice settled in installments or with a single payment 1. When the consideration is settled in a single payment: • A CFDI will be issued for the total value of the transaction at the time it is executed and settled.
All of the above establishes the procedure for the e-invoice settled in installments, resulting in the following points:
2. When the consideration is settled in installments: A CFDI will be issued for the total value of the transaction at the time it is executed. A CFDI will be issued for each of the payments made, in which:
• Avoid wrongful cancellations of CFDI.
• “Cero pesos” shall be indicated in the total amount of the transaction; in “payment method” the word “payment”. CFDI ISSUE
• Avoid false duplicates of income in invoicing installments. • You will know whether an invoice has been settled or not.
TECNOLOGÍA FISCAL TAX TECHNOLOGY
This supplement shall be the payment receipt notice of any CFDI and implies that the issuance of Credit Note is mandatory when the CFDI are cancelled. In addition, the CFDI to be cancelled shall not have a receipt with payment supplement.
• Incorporate into the same the “Payment supplement” (where the amount paid is indicated and the invoice whose balance is settled is identified). • The payment amount will be applied proportionately in the concepts integrated into the receipt issued for the total value of the transaction. 3. When the consideration is settled in a single installment, which is not settled at the moment of issuing the CFDI, even in the case of loan transactions that are settled fully on a subsequent date to the issuance of the relevant CFDI, the mechanism of rule 2.71.35 shall be applied to reflect the payment with which the amount of the transaction is settled, provided it occurs in the same fiscal year.
PAYMENT ACCEPTANCE
If at least one CFDI was issued that incorporates the payment supplement and indicates that the consideration has been paid in whole or in part, the CFDI issued for the total value of the transaction cannot be cancelled; the corrections shall be made with the issuance of an expenditure CFDI for refunds, discounts and reimbursements. If the receipt has errors, it may be cancelled provided that it is replaced by another with the correct information and when made no later than on the last day of the fiscal year in which the CFDI was issued. SEAT ACCOUNTANT
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Use-cases As a result of the need to understand and implement the procedure of operation of the payment supplement within the business models and flow of activities performed on a daily basis some of the scenarios are: •
Administration of advance payments • Car dealers that receive advance payments towards a car or license plate filings, verification and other services and such advance payment is not always applied to a CFDI. • Advance payment for services, when there is the possibility of generating an Income CFDI by indicating the payment method (since the service may be in installments). • Advance payments that are made to produce goods and fabricate parts, where the CFDI is prepared until the good is finishes and can be included in the inventory. • Payments policies and processes of large corporations that require entering the CFDI to a payment approval process.
•
Issuers and payments abroad • In the case of payments received on behalf of foreign customers, the foreign banking information is not always available (bank, account of the ordering party). • In the case of payments for an amount different than the value of the CFDI, since it is common that foreign customers apply automatic charges whether for price differences, quality, missing items, etc.
•
Implications on Factoring
The CxC (AR) and CxP (AP) departments are faced with the challenge of integrating effectively in their payment processes the issuance of the Payment Supplement in due time and form considering that at the time of receiving a payment, they must generate a new CFDI that includes the relevant payment receipt supplement; similarly when a payment is made, the CFDI including the relevant payment receipt supplement must be requested. Similarly, the accounting departments must recognize the CFDIs that include the payment receipt supplement and readjust the accounting structures to include this new concept in their registries.
• Payments in installments CFDI
• Payment in a single installment, but not settled at the moment of issuance of the CFDI • Loan transactions
The business management systems, on the other hand, face the challenge of incorporating into their solution models, those additional components that will be hosted within their registries and IT tools and prepare the adjustments to their interfaces in order for users to have access to the information related to the new CFDIs that incorporate the Payment Supplement. The Payment Supplement will be an agent contributing and adding to the formalization of the culture of timely payments within the economic agents of the country, allowing an expedite development of the flow of economic resources that are part of the core of the Mexican economy.
TAX TECHNOLOGY
• Issuance of the CFDI and Payment Supplement in the Factoring Model: The customer makes the purchase, the supplier generates the CFDI (Invoice 1) for the customer; after the conversion, an agreement is entered between the factor company and the supplier; the supplier issues a payment receipt for the commission or discount; the financing company pays the supplier the amount of invoice 1 established in the agreement; the supplier issues a payment receipt to the entity issuing the invoice for the full amount of invoice 1; the CFDI related to a payment receipt cannot be cancelled, the supplier issues a payment receipt (offset) for invoice 2; on the date established in invoice 1, the customer pays the factor company; the factor company issues the payment receipt to the customer for the full amount of invoice 1.
Difficulties and challenges
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E-INVOICE:
ESSENTIAL INPUT FOR PREFILLED TAX RETURNS
More than ten years ago, the Mexican Tax Authority (SAT) made intense efforts to migrate all its filings and services to the digital world, in order to make compliance with their tax obligations easier for taxpayers. Thus, four years ago, the intensive use of the technology in their processes, including the generalization of the use of e-invoices, has allowed the Mexican Tax Authority to simplify the compliance and offer a range of services that save money and costs in their daily operations. A clear example of this is that thanks to the information contained in the e-invoices, currently, it is possible to offer tools such as My Accounting (Mi Contabiliad), Electronic Reviews and tax returns that are prefilled with the data of taxpayers, who should only review and submit it.
e-invoice is the necessary tool in order to eradicate behaviors such as the simulation of transactions and tax evasion, since its content allows the tax authority to cross reference information to prevent and fight such behaviors.
On the other hand, the
Application: 2016 Annual Tax Return
• A prefilled tax return with a pre-authorized refund proposal, which the taxpayer only has to review and submit. • The proposed tax return contains prefilled information of income, withholding, interim payments, personal deductions and deductions authorized. • If there is a negative balance, automatically the payment code is generated for payment in installments. • The taxpayer may enable the Digital Tax Inbox to provide follow-up to the process, if necessary.
IN ADDITION TO THIS NEW FEATURE, THE MEXICAN TAX AUTHORITY ANNOUNCED A SERIES OF TOOLS TO SUBMIT THE ANNUAL TAX RETURN OF INDIVIDUALS: • This year, those who receive income exclusively from salaries or salaries plus interest, up to 20 thousand pesos, are not required to submit the annual tax return. If they wish to submit it to deduct personal expenses, they may do it at any time of the year. • The e-signature is only necessary for credit balances greater than 50 thousand pesos, provided that the SAT already has the information of the key account of the taxpayer in its databases, (last year it was required for refunds greater than 10 thousand pesos); therefore now it can be done with the Password, which can be generated or renewed online, by phone or by SAT Móvil beginning the first week of April. • Submission of the tax return by phone, by calling MarcaSAT (01 55) 627 22 728, and choosing option 2. This shall only apply for taxpayers with income from salaries with credit balances of less than 10 thousand pesos and that do not deduct more than 25 invoices. • The refund shall be credited within 5 business days. • The deadline for those taxpayers required to submit their tax return is April 30, but for being a Sunday, the deadline is moved to Tuesday, May 2. • The day following the submission of the tax return they may consult the status in the Digital Tax Inbox and, when applicable, also upload missing documents or adjust the tax return at the same site. These convenient features are possible thanks to the efforts made to simplify each day the processes to the benefit of citizens. In Mexico, taxation is getting increasingly easier and faster. If you require further information you can visit the site sat.gob.mx or the social networks: twitter.com/satmx y facebook.com/satmexico.
GOVERNMENT
Individuals can now submit their Annual Tax Return much easier and obtain speedy automatic returns through a process that uses the new 2016 Annual Tax Return tool, which is available for free on the website of the Mexican Tax Authority.
WITH THE INFORMATION TAKEN FROM THE E-INVOICES, TAXPAYERS ARE OFFERED:
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And now
you can submit your tax return by phone!
ANUAL TAX
SUBMIT YOUR TAX RETURN WITHOUT E.SIGNATURE
This year we offer new tools to submit your tax return with greater ease and speed.
Salaried employees
Call MarcaSAT: 627 22 728 from Mexico City, or 0155 627 22 728 from the rest of the country
If you received income in 2016 exclusively from salaries and wages from a single employer.
If you have a credit balance of up to 10 thousand pesos.
If you have a maximum of 25 invoices to deduct.
If your income is from salaries from a single employer, submitting your tax return is not mandatory.
If you have a registered CLABE account in previous tax returns.
GOVERNMENT
But if you have deductible expenses, you can submit your tax return whenever you prefer.
The Tax Authority refunds 2 6 A P R I L - M AY 2 0 1 7 | A M E X I PA C
Go to
Review
If you have registered an email with the Mexican Tax Authority.
Submit your tax return A P R I L - M AY 2 0 1 7 | A M E X I PA C
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STATISTICS OF THE TAXATION INDUSTRY DARVIN SANTOS EDIFACTMX
Technological and tax breakthroughs in matters of compliance, in addition to a greater ease in the use for the issuance of tax receipts and the tax return have contributed enormously to the widespread and constant growth of the inclusion of the taxpayers into the formal market. In the report for the fourth quarter of 2016, the Mexican Tax Authority revealed that non-oil tax income amounted to 2 billion 715 thousand 955.6 million pesos, i.e. 208 thousand 749.7 million pesos more than in the budget of the Federal Income Law (Ley de Ingresos de la Federación). If we compare this information with the period from January to December 2015, the income in 2016 increased 11.9% in real terms, although 2015 was a historical year with respect to the sum collected.
TAX TECHNOLOGY
Further, the Mexican Tax Authority revealed that the register of taxpayers continues to grow vigorously, as seen during the closing of 2016, when such register was made up of 56.8 million taxpayers, i.e. an increase of 5.2 million taxpayers (10.1%) with respect to the closing of the prior year.
Regime (RIF), regime under which, from its start in 2014, taxpayers have issued approximately 221 million invoices. It is also worth noting that the months of 2016 that had the greatest invoicing activity were December, June, July, March and November (from highest to lowest number of invoices issued) and the States with the greatest contribution are: :
• • • • • • •
Mexico City State of Mexico Jalisco Nuevo León Veracruz Guanajuato Puebla
These states are well known for their industrial and business activities. In light of all of the above, we can observe an interesting growth in e-invoicing and at the same time in the register of taxpayers that each time grows in strength, inviting them to become part of the formal market. With the implementation of the CFDI 3.3. from July 1, 2017, the information that can be collected will have a greater quality and more transparency, which will lead to greater clarity and congruence in the transactions. This process can be looked as an historical change since it will be the most important implementation after the mandatory implementation of the CFDI in 2014.
On the other hand, with regards to tax receipts, it informed that 6 thousand 142.5 million invoices (approximately 194 invoices per second) were issued in 2016: 6.2% more than in 2015. It is important to note that towards the end of the month of December 2016, 4 million 708 thousand taxpayers were enrolled in the Tax Incorporation 2 8 A P R I L - M AY 2 0 1 7 | A M E X I PA C
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E-INVOICE WITH FOREIGN TRADE SUPPLEMENT. FREQUENTLY ASKED QUESTIONS 1. In which Foreign Trade Transaction shall the invoice with foreign trade supplement be transmitted in accordance with the rule 3.1.34.? In A1 official customs document code export operations where a market sale transaction is being held; this, on an optional basis since July 1, 2016, and on a mandatorily basis starting on March 1, 2017..
INTERESTING FACTS
2. What is understood by a sales transaction? The definition provided for in Article 14 of the Fiscal Code of the Federation (Código Fiscal de la Federación). 3. From March 01 will I no longer be able to sell merchandise for final export type A-1, if I do not issue an e-invoice with Foreign Trade supplement? On March 01, the obligation of incorporating the supplement for Foreign Trade into the invoice to be issued for the sale of merchandise for their final export type A1 comes into force; however, the period from March to December 2017 is a transition period between the entry into force of this obligation and the use of the document of value for the filling of customs declarations. If you already incorporated the Foreign Trade supplement into your invoice, your tax folio must be indicated in the customs 3 0 A P R I L - M AY 2 0 1 7 | A M E X I PA C
declaration, and such supplement will be used as document of value for purposes of the customs declaration. If you have not incorporated the supplement for Foreign Trade into the invoice, you must indicate the tax folio of the invoice – without supplement – and acknowledgement of value. On January 01, 2018, the transition period concludes and the export shall only be realized if the invoice with the supplement for Foreign Trade is issued and its tax folio is indicated on the customs declaration. Legal basis: rule 3.1.34. and 3.1.35. and Sole Transitory Article, section I, of the General Rules for Foreign Trade (Reglas Generales de Comercio Exterior) for 2017. 4. During the transition period, in the event of not incorporating the supplement for Foreign Trade, how do I indicate the tax folio and the acknowledgement of value at the same time in the customs declaration? In transactions in which it is mandatory to indicate the folio of the invoice (CFDI), as well as the acknowledgement of value (COVE), two 505 registries must be indicated; one of these to enter the information of the invoice (Folio of the CFDI in 36 characters including hyphens) and the second for the acknowledgement of value (COVE).
5. If I performed sale transactions with an official customs document code A-1 for exports and transmitted the invoice with supplement, should I continue declaring and transmitting the acknowledgement of value (previously e-value receipt, COVE)? No, according to Rule 3.1.34. in sale transactions only the invoice with supplement and the official customs document shall be issued. 6. If I carried out final export transactions with official customs document code A-1, whose sale is free of charge, can I issue the invoice with Foreign Trade supplement?? Yes, on an optional basis you can use the supplement as follows: a) Use version 1.0 and include in the invoice the description and commercial value of the merchandise, establishing at the end a discount for the same amount of them, so that the invoice results with “0” value and incorporate the supplement into it. b) Use version 1.1 and apply the same mechanism established in point a), without including in the supplement the Owner node and in the field MotivodeTraslado (Pass-through Motive), in this case, the invoice must be classified as “Income” type. A P R I L - M AY 2 0 1 7 | A M E X I PA C
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c) Use version 1.1 and include the Owner node and in the field MotivodeTraslado, in this case, the invoice must be classified as “passthrough” type. 7. Should an invoice with Foreign Trade supplement be issued when A-1 final exports are performed, but the sales case does not apply? No, it is not mandatory to use the Foreign Trade supplement, taxpayers who voluntarily want to do so may issue the invoice classifying it as “pass-through” type and incorporate the supplement in their version 1.1., including the Owner node and the field MotivodeTraslado. However, these cases shall follow the transmission of the acknowledgement of value (COVE) and indicate in the relevant customs declaration, in fields “505”, the tax folio number of the invoice, as well as the acknowledgement of value. Otherwise, the taxpayer may carry out the export transaction, as done in the past, transmitting and indicating the folio of the acknowledgement of value (COVE). Should the invoice be transmitted to the Sole Mexican Foreign Trade Counter (VUCEM)?
Yes, the printout of the XML file shall be transmitted, as well as the printout of the invoice in PDF format as an E-document by means of VUCEM. 8. Which currency and exchange rate shall be indicated if I start transmitting the Foreign Trade supplement of the invoice? The currency to be indicated is the US dollar and for the exchange rate you must adhere to Article 20 of the Fiscal Code of the Federation (Código Fiscal de la Federación). The commercial value of the supplement must not necessarily match the value in dollars of the official customs document in accordance with article 56 of the Customs Law (Ley Aduanera). 9. What unit of measurement must I indicate in the Foreign Trade supplement? The units of measurements of the TIGIE (UMT) established in Appendix 7 of Annex 22 of the
General Rules of Foreign Trade (Reglas Generales de Comercio Exterior). 10. What must I indicate in the fields of name of the addressee and/or recipient of the merchandise of the supplement? In the Foreign Trade transactions supplement, in the fields or attributes related to the name or corporate name of the addressee and/or recipient of the merchandise, the name or corporate name of the addressee must be indicated. In the case it is the same information as of the purchaser, it shall not be repeated. 11. What must I indicate in the field of merchandise identification number of the supplement? You must indicate the identification code assigned by the company to the merchandise to be exported, subject to a sale, and you may use the part number, serial number, etc.
12. What must I do for the sale of merchandise that is exported with A-1 official customs document and in the same official customs document imported packaging material is returned temporary according to an IMMEX, pursuant to rule 4.3.2 of the General Rules of Foreign Trade? An invoice must be issued for the merchandise to be sold and a COVE for the merchandise to be returned; therefore, the tax folio of the invoice as well as the COVE shall be indicated in two 505 registries in the field titled “5. INVOICE NO.” of the section “DATA OF THE SUPPLIER/ PURCHASER” of Annex 22 of the General Rules of Foreign Trade. 13. What should I do in case the merchandise already exported is rejected? I. Cancel the invoice with which the merchandise was exported, in case the total amount exported was rejected.
II. Generate an expenditure invoice when the merchandise was partially rejected. In both cases enclose as E-document the cancelled invoice, and/or the expenditure invoice that must be digitalized along with its XML, in the return of merchandise declaration. 14. What should I do in case of a withdrawal from the customs regime? The invoice shall be cancelled and enclosed as an E-document along with its XML to the withdrawal declaration from the regime. 15. What should I do in case I need to cancel the invoice indicated in the customs declaration? You must rectify the official customs document to indicate the E-document corresponding to the new invoice issued, in adherence with the provisions of Chapter 6.1 of the General Rules of Foreign Trade and enclose it as an E-document along with its XML to the rectified customs declaration. 16. What information shall the print version of the invoice contain? The printout shall include at least the information established in the rule 2.7.1.7 in force of the Miscellaneous Tax Resolution in force. 17. In case of a subdivision of the merchandise contained in the invoice, can the tax folio of the same be indicated in various official customs documents? Yes, the same tax folio can be indicated in various official customs documents, and the Customs Agent and the Exporter are responsible for the accuracy of the information in the official customs document according to Articles 1 and 54 of the Customs Law (Ley Aduanera).
INTERESTING FACTS DATOS DE INTERÉS
18. How should I indicate the tax folio of the invoices in consolidated official customs documents? The folio(s) of the closing of the consolidated official customs document should be indicated, however, an invoice shall be issued with the export of each remittance of the official customs document according to the provisions in force of the Income Tax Law (LISR) and the Fiscal Code of the Federation (CFF). 3 2 A P R I L - M A O 2 0 1 7 | A M E X I PA C
Therefore, the date of the invoice may not be later than the modulation date of the remittance. Customs clearance of the merchandise shall operate in the same manner it has been operating. 19. How should consolidated official customs documents be closed that were initiated before July? Official customs documents that were opened and have modulated options before July shall be closed without indicating the tax folio of the invoice in the customs declaration. 20. Should the official customs documents that were validated and paid before the first of July in which the tax folio of the invoice is not indicated be rectified to indicate the same? The official customs documents that were validated and paid before the first of July and are pending modulation shall not be rectified. 21. If an e-invoice was generated with the Foreign Trade supplement, is it correct that such supplement requests making validations on the information registered on the invoice? That is correct, the foreign trade supplement requires the invoice to include the required information in order to provide consistency to the information. 22. 22. Will there be a validation that the exchange rate registered on the invoice matches the figure registered in the customs declaration? They will not be validated; at the time of the issuance of these documents, the exchange rate is different. 23. What should I register in the field Zip Code of the domicile, when such code does not exist in the catalog published on the Website of the Mexican Tax Authority? The Zip Code closest to the domicile in question shall be registered. On the other hand, the information of such catalog will be updated.
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Dirección Editorial Nelly V. Maldonado | AMEXIPAC Arte y Diseño HELLOID.NET AMEXIPAC, A.C. ® Todos los derechos reservados 2017. Ni la totalidad ni parte de esta publicacion puede ser reproducida o almacenada en un sistema de recuperación o ser transmitido en cualquier forma, ya sea electrónica, óptica, mecánica, fotocopia, magnético, grabación o cualquier otro medio, sin previa autorización por esrito de AMEXIPAC, A.C. Para cualquier aclaración por favor contáctenos en el correo electrónico info@amexipac.org.mx. El contenido e información aquí provista es integrado y/o desarrollad con fines informativos exclusivamente y no constituye una opinión profesional fiscal o legal, por lo que AMEXIPAC, A.C. no asume ninguna responsabilidad sobre su uso.