Mexican tax authority's e-invoicing system bearing fruit

- Monday, August 25, 2014

Mexican tax authority's e-invoicing system bearing fruit

Millions of Mexicans had to begin using an electronic invoicing system this year – and the move is helping boost state coffers.

During the first half, for every peso that Mexico's tax administration service SAT spent on auditing, it recovered 61.1 pesos (US$4.65). This works out to a first half total of 78.8bn pesos, up 34.2% year-on-year.

Start your 15 day free trial now!


Already a subscriber? Please, login

SAT spent 1.29bn pesos on performing the auditing work, it said in its 1H14 results report.

"Auditing actions are based on monitoring by electronic invoicing systems of taxpayers," Álvaro Enrique Cordón, president of the tax auditing development commission of the public accountants college, was quoted as saying by news service CNN Expansión.

"[SAT] verifies that taxpayers are fulfilling their obligations, that each taxpayer is issuing an electronic invoice, and SAT knows who issued it and for whom," Cordón said.

SAT recovered 51.7% of the audited revenue from large taxpayers and the remaining 48.3% was from other taxpayers.

Taxpayers earning less than 500,000 pesos in 2012 had until March 31 of this year to migrate to electronic invoicing, while the rest of Mexico's taxpayers had until January 1 to do so.

In 1H14, 2.4bn electronic invoices were sent in Mexico, compared with 119mn invoices in full-year 2011, according to SAT.

In February, SAT released its own smartphone app for users to send electronic invoices.