In Mexico, like in any other country, an invoice is an important document, which serves numerous types of purposes in everyday business dealings. This document plays the role of easing the exchange of goods and services by properly documenting all necessary information, which may include names and addresses of those involved, goods or services traded, date of transaction, and much more.
Mexico, as a signatory of the North American Free Trade Agreement (NAFTA), used different types of invoices, which are similar in style and function as what is obtainable in America and Canada. However, Mexico has since transitioned from using physical invoices to electronic invoices.
The Progression of Electronic Invoices in Mexico
In Mexico, electronic invoicing is quite advanced. This country is amongst the few in the world with 100% electronic invoicing implementation. Before then, all businesses and companies could produce physical invoices under stringent printing rules.
From 2011 till now, the government requires all businesses to process all invoices through the Mexican Tax Authority (Servicio de Administración Tributaria), which approves all electronic invoices before printing. All physical invoices printed before 2011 did not automatically become invalid until after two years. The electronic invoice in Mexico is called Comprobante Fiscal Digital.
Comprobante Fiscal Digital
This document confirms and measures the compliance of businesses to the Mexican Tax Resolution governing the transaction of goods and services. What makes the process easy is that it is entirely electronic, which makes it effortless and sufficiently accurate.
In Mexico, at the moment, different types of invoices for different purposes can be generated in some approved electronic format. Below are the different types of invoices.
Pro Forma Invoice
In Mexico, the pro forma invoice is issued by a seller to a buyer for unpaid items. In most cases, it serves as documentation for the cost of items that the buyer wishes to purchase. For this type of function, the invoice can either be physical or electronic, as it has no legal standing.
Also, all samples to be shipped into the country for trade shows should be documented using pro forma invoices. Information provided on the pro forma invoice includes the number of items, value, parties involved, and country of origin. However, handlers must convert physical invoices into electronic invoices before processing with customs.
Commercial invoices are documents used to show the procedure involved in the purchase of items shipped into Mexico. It provides essential information to customs, insurance providers, and shippers, which makes their activities smooth and easy. A standard commercial invoice in Mexico should have the following data.
- Date and invoice identification number
- The names and addresses of buyer and seller
- Buyers identification number
- Mode of payment
- Term of agreement
- Items description
- Seller’s electronic signature
For imports, the customs officials only accept electronic invoices. Therefore, the seller must convert all physical invoices into any of the approved electronic invoicing forms. Also, for exports, all companies must comply with the regulation for the use of electronic invoices.
Invoices are essential documents for business transactions in Mexico. The country’s policy on electronic invoicing makes it amongst the most advanced countries for the use of electronic invoices.