Setting Up: Factura Electronica required starting in 2011

In a past post, I went over what a factura was (think of it as an official receipt for tax purposes).  Beginning January 1, 2011 all businesses in Mexico will be required to use what is called "Factura Electronica".  This is Hacienda's way of electronically keeping records.


After the end of 2010, all receipts over $2,000 MXN must be electronic. 




So, as a small business, how do you go about issuing electronic receipts? 

There are a number of companies that are authorized by SAT (Hacienda) to help companies with electronic receipt software:

DigiFact

Enlace Fiscal

Castelec

Facture Ya

Setting Up: What is a FACTURA?

If you live in Mexico, it is a phrase you'll hear over and over again "Necesita factura o solo el ticket?"  Loosely translated, they are asking if you need an official receipt or non-official receipt.  Facturas are super important pieces of paper that you will be glad you saved during tax time.

WHAT IS A FACTURA?

A factura is an official receipt for goods or services that can be used for tax purposes.  In order to issue a factura, the place of business must have your RFC (your Corporate tax identification number).  Many people carry a laminated copy of their RFC in their wallet so it is easy to access.

CAN I USE A SIMPLE RECEIPT FOR TAXES?

No.  The only document that can be used for business tax deductions is a factura.

WHAT IF I FORGOT MY RFC NUMBER BUT I NEED A FACTURA?

Many places have a window of time where you can come back with your receipt (el ticket) and present your RFC to get a factura. 

Mexico #1 for lowest corporate taxes according to KPMG

Viva Mexico!  KPMG has listed Mexico as the number one nation for lowest corporate taxes.  Number 2?  Canada, another NAFTA partner. 

The study takes into consideration capital tax, income tax, sales tax, property tax, local business taxes and taxes related to labor.  Mexico has a flat sales tax, called IVA (impuesto al valor agregado) which this year rose to 16%. 

The US is automatically scored at 100, while Mexico had an overall score of 59.9 and Canada 63.9.

Here are the top 10 corporate tax friendly nations according to KPMG:

1. Mexico
2. Canada
3. Netherlands
4. Australia
5. UK
6. US
7. Germany
8. Italy
9. Japan
10. France

If you would like to read more about the tax study and Mexico, please click here.