CFDI - Electronic Invoicing in Mexico

A Payroll Digital Tax Receipt (CFDI) is a type of electronic invoice that reflects the amount paid by a company to its employee for services rendered during a specific period. This digital document must be stamped by an authorized PAC (Authorized Certification Provider) to have fiscal validity and can then be submitted to the SAT (Tax Administration Service).

This complement allows employers to detail the payments made to their employees, covering items such as salaries, bonuses, benefits, and deductions for taxes or social security. Its use is mandatory for all employers issuing payroll, as it promotes transparency in labor relations and ensures compliance with tax obligations.

Main Changes in CFDI 4.0

• The date format for the attributes PaymentDate, InitialPaymentDate, FinalPaymentDate, and LaborRelatedStartDate is standardized according to Annex 20.
• Validations for the version and form of payment have been removed.
• New validations have been added for issuing the complement with CFDI version 4.0, including attributes like RegimenFiscalReceptor, ObjetoImp, ACuentaTerceros, InformacionAduanera, CuentaPredial, ComplementoConcepto, and Parte.
• Additionally, as part of the integration with CFDI version 4.0, the recipient's RFC, name, tax regime, and zip code are now mandatory for issuing payroll receipts.

CFDI Complement for Airlines

Airlines in Mexico are required to issue Digital Tax Receipts via Internet (CFDI) for the sale of airline tickets, as established by the seventh transitory article of the First Resolution of Amendments to the Miscellaneous Tax Resolution.

To meet this legal requirement, EDICOM has developed the CFDI Airlines portal, a solution that automates the online sending of receipts requested by passengers and streamlines their reporting to the SAT.

CFDIs issued by airlines must comply with all tax requirements and be readily available to customers. Depending on their operational needs, airlines may generate various types of CFDIs, such as those for income, expenses, or payroll.

It is crucial for airlines to choose a reliable, SAT-certified provider for issuing electronic invoices. This not only ensures the security and validity of the CFDI but also optimizes the invoicing process, ensuring compliance with current tax regulations in Mexico.

How to Obtain the CFDI for Airline Tickets

Purchases at Counters, Offices, or by Phone
If the ticket is purchased at airport counters, sales offices, or by telephone, customers must provide their Federal Taxpayers Registry (RFC) and an email address. The airline has up to two business days from the payment date to generate and send the CFDI via email. If customers do not have the required information at the time of purchase, they can later provide the missing details to the airline to receive their electronic invoice.

Online Ticket Purchases
For tickets purchased through the airline's website, customers must access a link where they can enter their tax details. As with in-person purchases, the airline has up to two business days from the payment date to send the CFDI via email.

Purchases through Travel AgenciesWhen tickets are bought through travel agencies, the agency is responsible for managing the issuance and delivery of the CFDI. To streamline this process, EDICOM has developed a solution that enables agencies and large companies to automatically generate CFDIs for airline tickets.

How does the CFDI Airlines Portal work?

EDICOM's CFDI Airlines portal allows airline customers to generate their invoices simply and quickly. The process works as follows:

• The customer accesses a secure web portal where they enter their ticket data and the tax information required for issuing the CFDI.
• The EDICOM platform connects to the airline's management system, verifies the data provided, and generates the CFDI.
• As an Authorized Certification Provider (PAC), EDICOM certifies the receipt and reports it to the SAT, granting it tax validity.
• The customer receives the CFDI in XML format, along with a graphical representation in PDF, which can be downloaded or printed.
• The portal is integrated with the airline's accounting management system, enabling automated administration of the issued CFDIs.

EDICOM has developed a secure portal that automates the online delivery of tax receipts to passengers who request them and facilitates filing these documents with the SAT. 

Airlines such as Volaris, American Airlines, Delta, Iberia, KLM, Lufthansa, and Air France rely on EDICOM's CFDI Airlines solution. This tool not only ensures compliance with SAT tax regulations but also optimizes the management process through complete automation.

CFDI Cancellation: How to Cancel Electronic Invoices

In 2018, Mexico's Tax Administration Service (SAT) took measures to prevent the improper cancellation of CFDIs, a widespread issue affecting numerous taxpayers. 
The implementation of the CFDI 4.0 scheme introduced new features to the cancellation system that has existed since 2018, making it mandatory to specify the reason for canceling each invoice.

In what cases can a CFDI be canceled?

The new tax cancellation policy introduced by the Mexican government aims to put an end to the bad practice of some companies canceling their electronic invoices without their customers' knowledge. This practice allows companies to omit income from their tax reports, affecting Income Tax calculations, while customers who have already paid for the service or product are unable to deduct the expense.

Additionally, if an error occurs in generating the CFDI—such as incorrect fiscal data for the recipient, mistakes in the amounts, or inaccuracies in the description of the product or service, or in the payment method—cancellations can be requested.

With the implementation of information and acceptance mechanisms, invoices can only be canceled if the recipient agrees to the cancellation. This ensures that customers have the assurance that, once a service has been paid for, the invoices covering that expense will not be canceled without their consent. It is also possible to automatically cancel invoices, credit and debit notes, as well as payroll and withholding documents.

As of January 1, 2022, it is mandatory to specify the reason for the invoice cancellation. The SAT has outlined four possible options:

1. Voucher issued with errors with relation: Applies when an invoice contains errors in the product key, unit value, discount, or other details, necessitating reissuance. In this case, the original invoice is replaced, and the replacement invoice's folio is referenced during cancellation.
2. Invoice issued with unrelated errors: Applies when the invoice contains errors in the product key, unit value, discount, or other details without needing to reference another invoice.
3. The transaction was not carried out: Applies when an invoiced transaction does not materialize.
4. Nominative operation related to the global invoice: Applies when a sale included in the global invoice for public transactions needs to be replaced by a nominative invoice upon customer request, requiring the cancellation of the original global invoice and issuance of the specific invoice.

How is the CFDI Cancellation process performed?

1. The CFDI cancellation process under the new policy is included in the Miscellaneous Fiscal Resolution for 2017 and its Annex 19.
2. Issuers must send a cancellation request to the recipient of the CFDI through the SAT Portal or via a certification provider's services.
3. As of January 1, 2022, with the new CFDI 4.0 scheme, it is mandatory to indicate the reason for the cancellation. This requirement applies to all versions of the invoice or CFDI.
4. If acceptance for cancellation is required, the invoice recipient will receive a notification in their Tax Mailbox, informing them of the cancellation request.
5. From that point, the recipient has 72 hours to either accept or reject the cancellation of the CFDI. The response must be provided through the same Tax Mailbox. If, after the 72-hour period, the recipient has not responded, the SAT will assume that the cancellation of the CFDI has been accepted.

Mandatory Use of the Tax Mailbox

One of the most significant aspects of this new procedure is the mandatory use of the Tax Mailbox. This tool, created by the SAT to communicate directly with taxpayers, was previously used only sporadically. In fact, it is estimated that by the end of 2016, only about 2 million taxpayers, out of the 26 million issuing electronic invoices, were actively using it.

For handling cancellation requests, the EDICOM solution can automatically download these requests into the customer's internal management software, allowing for quick and convenient acceptance or rejection. This eliminates the need for constant access to the Tax Mailbox and optimizes the processing time of electronic documents.

Exceptions: Cancellation without acceptance

In certain cases, taxpayers may still cancel their CFDIs without requiring the recipient's acceptance. These exceptions are outlined in Article 29-A and include the following:

• When the electronic invoice has a maximum amount of 5,000 pesos.
• When it is a CFDI for payroll, expenses, transfers, or income issued to taxpayers under the Tax Incorporation Regime (RIF).
• When the CFDI is issued using the Mis Cuentas (My Accounts) tool in the Factura Fácil (Easy Invoice) application.
• When covering withholdings and payment information.
• When issued for transactions with the general public under rule 2.7.1.24 or for residents abroad for tax purposes under rule 2.7.1.26.
• When the cancellation is made within 72 hours immediately following the issuance of the CFDI.

EDICOM PAC: Automated solution for cancelling CFDIs

To cancel invoices, it is necessary to use the services of an Authorized Certification Provider (PAC) such as EDICOM. In this process, the PAC is responsible for certifying and reporting to the SAT the invoice for which the cancellation request is made. Once completed, the invoice is reflected in the SAT records as canceled, and users can verify it through the taxpayer portal.

EDICOM's CFDI Platform is fully compliant with the technical and legal requirements of the SAT. EDICOM has integrated an invoice cancellation service into its CFDI solution, streamlining day-to-day administrative management. With this system, users can cancel erroneous invoices instantly, easily, and efficiently. Moreover, this action can be performed for a single CFDI or in bulk.

The EDICOM cancellation service is available across all solutions. Users only need to click on the “cancel” option in the context menu for manual solutions. In integrated versions, users can simply utilize the method developed for automatic or mass cancellation of CFDIs, whether they are invoices, credit and debit notes, payroll, or withholding documents.

This solution allows taxpayers to fully leverage electronic invoicing, reducing the steps required for generating, issuing, and communicating receipts.

CFDI Mass Download Service

The CFDI Mass Download service enables companies to retrieve all their receipts directly from the SAT database. With the capacity to download up to 200,000 receipts per request, this solution integrates seamlessly with the EDICOM platform, providing users with easy, secure, and efficient access to their tax documents.

Key advantages of this service include:

• Intuitive web interface: Users can submit download requests via a simple graphical interface, defining parameters that best fit their needs, allowing for quick and hassle-free management of CFDIs.
• Recurring download scheduling: Automate the download of your CFDIs based on predefined parameters, eliminating the need for manual intervention for each request.
• EDICOM integration API: For companies requiring advanced integration, EDICOM offers an API to automate download requests through WebServices, speeding up CFDI retrieval directly from your network infrastructure

The Mass Download Service not only enhances convenience but also optimizes CFDI management by providing specific search parameters, such as downloading by type of receipt, individual UUID, or issue dates. Additionally, EDICOM solutions are continuously updated to comply with changes established by the SAT, ensuring that companies remain compliant with the latest regulations.

Comprehensive CFDI process automation

At EDICOM, we offer a complete automation service for all CFDI-related processes, ensuring full compliance with SAT regulations and efficient operations. Our platform also facilitates the management of vouchers with payment complements, allowing for recurring downloads that simplify payment control and integration within internal systems or the Supplier Portal.

With EDICOM, companies can centralize all their CFDI management needs, from mass downloading to the integration of automated solutions that enhance operational efficiency and tax compliance.

Advantages of the CFDI 4.0

At EDICOM, we offer a complete automation service for all CFDI-related processes, ensuring full compliance with SAT regulations and efficient operations. Our platform also facilitates the management of vouchers with payment complements, allowing for recurring downloads that simplify payment control and integration within internal systems or the Supplier Portal.
With EDICOM, companies can centralize all their CFDI management needs, from mass downloading to the integration of automated solutions that enhance operational efficiency and tax compliance.

• Simplicity of the process: With the CFDI, the Authorized Certification Provider (PAC) not only verifies the documents but also includes folio and serial numbers on the invoices and reports them to the SAT, relieving the taxpayer of a significant part of the process.
• Validation: Provides increased security for taxpayers, as the PAC validates the authenticity of the invoice and ensures that the XML is issued according to the standard.
• Storage: Some PACs offer CFDI storage, acting as an electronic notary that keeps the receipts as legal electronic originals for future retrieval and consultation.
• Integrity: Both the issuer and receiver are assured that once the PAC stamps the invoices, they cannot be modified, thanks to elements like digital seals and certification.
• Automation: The CFDI paves the way for technological solutions that automate the electronic distribution of documents and their direct integration into accounts payable and receivable management systems.
• Cost reduction: The CFDI leads to significant cost savings, both economically, by digitizing the process, and in labor, by automating steps.
• Paperless: The CFDI reduces paper usage, which not only benefits the environment but also lowers costs associated with printing, mailing, and physical storage.
• 24/7 availability: Ensures documents are available in a secure, private management environment around the clock, reducing the risk of information loss.

EDICOM platform: Integration of CFDI issuance and reception

Automation is key to enhancing efficiency in electronic invoicing. With our solutions, you can issue, receive, validate, and integrate your CFDIs electronically with 100% of your partners, regardless of their size or sector. The entire process is designed to ensure the confidentiality and authenticity of documents, from issuance to reception.

Issuing CFDIs with EDICOM is a fully automated and secure process. As an Authorized Certification Provider (PAC), we handle the validation of your electronic invoices using a Digital Fiscal Stamp, ensuring compliance with SAT requirements. This allows you to issue tax receipts quickly and effortlessly, with the assurance that your invoices are properly certified before reaching their recipients.
Our extensive experience in implementing electronic invoicing solutions in Mexico has positioned us as leaders in the sector. EDICOM was the first PAC authorized in the country, guaranteeing a reliable service that is fully certified and aligned with Mexican tax regulations.

EDICOM streamlines the automatic integration of all CFDIs received from your suppliers into your internal systems, fully guaranteeing the authenticity and integrity of these receipts. Our certified solutions ensure that the reception and validation process is swift, always meeting SAT's legal requirements. Additionally, you can centralize all your fiscal operations on a single platform, optimizing time and reducing risks.

EDICOM's global e-invoicing platform serves as a comprehensive bridge between your company, the Tax Administration Service (SAT), and your key partners, such as customers, suppliers, and logistics operators in Mexico. Our solution allows you to comply with current tax regulations while automating and simplifying all processes related to CFDI issuance and reception.

With our centralized platform, you can efficiently manage not only the digitization of your invoices but also the integration of your VAT compliance processes anywhere in the world. EDICOM empowers your company to operate both in Mexico and globally, ensuring compliance with local and international regulations through a single, tailored solution that fits your business needs.