Mexico’s e‑invoicing regime, governed by the CFDI XML format (Anexo 20, version 4.0), applies universally to all taxpayers and covers B2B, B2C, and B2G transactions with no turnover threshold. The 2026 tax reform tightens authenticity checks, expands SAT enforcement powers, and imposes fines of 5–10 % of invoice value for non‑compliance.
The reform requires CFDIs to represent genuine, real transactions, granting SAT expedited powers to verify authenticity, suspend digital certificates of non‑compliant taxpayers, and publish findings of false invoicing.
CFDI version 4.0 became the exclusive standard during 2022–2023.
Penalties include fines of 5–10 % of the invoice value, increased audit exposure, and potential criminal liability for issuers, recipients, and intermediaries.
No, the e‑invoicing mandate applies to all taxpayers, covering B2B, B2C, and B2G transactions with no turnover threshold.
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WTW · 9 days ago
Mexico amended its Federal Revenue Law on 7 November 2025, removing the ability to recover 16% VAT on goods and services used in major medical insurance claims. The change is retroactive from 1 January 2025 and is expected to raise major medical costs by 10‑12%, potentially increasing loss ratios by 8‑12% and overall captive costs by over 20%. WTW recommends early engagement and scenario analysis to manage the impact.
WTW · 9 days ago
Mexico amended its Federal Revenue Law on 7 November 2025, removing insurers’ ability to recover 16% VAT on goods and services used in covered major medical treatments. The change is retroactive from 1 January 2025 and is expected to raise major medical costs by 10‑12%, potentially increasing loss ratios by 8‑12% and overall captive costs by over 20%.
Lockton · 29 days ago
Mexico has enacted a tax reform that removes VAT creditability for insurers on direct payments for goods and services used to settle insurance claims. The reform, effective 1 January 2026 and retroactive to the 2025 fiscal year, turns VAT into a non‑recoverable cost, potentially raising premiums by 8‑10% for medical and auto insurance. Insurers must adjust their claim settlement and pricing strategies accordingly.
VATabout · about 1 month ago
The article explains how withholding VAT regimes are used in Mexico and Argentina to collect VAT on digital services supplied by non‑resident providers. It details the rates and responsibilities of platforms, intermediaries, and customers, and notes that withholding can sometimes replace registration for foreign suppliers.
Fonoa · about 2 months ago
Mexico’s tax authority, SAT, has issued Rule 2.9.21 under RMF 2026, mandating digital platforms to provide real‑time, permanent online access to transaction records. The rule requires next‑day data availability, a five‑year searchable archive, and a formal request by April 30 2026, with detailed data obligations for both service providers and intermediary platforms.
VATabout · about 2 months ago
Mexico’s 2026 Tax Reform introduces significant VAT changes, including non-creditable VAT on insurance claims settled in kind and new digital reporting obligations for platforms. Digital platforms must provide online access to transactional data, upload detailed supplier information daily, and retain records for five years. The reform also removes the ability of Collective Financing Institutions to substitute legal entities for VAT withholding on interest paid to individuals.
