Mexican Tax Administration (SAT) maintain the entering into
effect of the new scheme of cancelation for the CFDI.
The authority grants a simplified option for the issuing of the CFDI without the need to issue a payment receipt CFDI.
The new scheme for the cancelation of the electronic Digital Tax Receipts (CFDI) is coming into effect in November 2018
As mentioned in our previous Tax Alert the SAT just announce the date in which the enforcement of the new procedure to cancel a CFDI will be applicable.
The date published on the third amendment of the miscellaneous tax resolutions marks the effective starting date from November 1th, 2018.
The new obligation regarding the use of the subcontracting application will come into effect on October 31th 2018.
Those taxpayers that subcontracted part of or all its labor, will have to comply with certain rules in order to be able to deduct the expense and credit the VAT paid.
Such rules state that the tax payer, must run a review process to confirm that its subcontractors are in full compliance of their respective tax and social security obligations.
The aforementioned review by tax payers should be processed before October 31 th, 2018 for all months between january and September 2018.
The review precess for the month of October 2018 and every month after that will be the end of the following month.
Simplified option for the issuing of CFDI´s without the need of issuing a payment receipt CFDI
Taxpayers wanting to use this simplified option and avoid having to issue a payment receipt CFDI, must meet the following two requirements
- The CFDI must state ¨PUE¨ as method of payment (Payment in one installment)
- The payment of the CFDI must be received before the 17th of the following month.
It is important to consider that if the payment of the CFDI is not received by the 17th of the following month, the original of the CFDI must be cancelled & re-issued with the method of payment as ¨PPD¨ (Defered Payment)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.