Mexico operates an entirely online fiscalization model through the CFDI system, where all invoices and receipts are electronically issued, digitally signed with SAT certificates, and validated in real time via authorized PAC providers. This fully digital approach, in place since 2011, ensures transparency, efficient tax compliance, and modernized administration without requiring fiscal devices or POS certification.
What is the fiscalization type in Mexico?
Public
Mexico
Author: Tara Nedeljković
Category:
Fiscal subject related
Views:
460
Content accuracy validation date:
02.09.2025
Content accuracy validation time:
14:38h
Mexico is one of the Latin American fiscal countries and is identified by the country code MX and its official currency, the Mexican Peso (MXN). As its tax authority, the country operates under the governance of the Servicio de Administración Tributaria (SAT), which is responsible for monitoring whether taxpayers meet all mandatory fiscal requirements.
In Mexico, the whole model of fiscalization is online-based, and it is facilitated through the CFDI (Comprobante Fiscal Digital por Internet) system. Unlike traditional fiscal models, there are no mandatory fiscal devices or POS certification requirements. Instead, businesses must issue electronic receipts and invoices (CFDIs), which are digitally signed with a certificate issued by SAT and validated in real time through authorized private providers known as PACs (Proveedores Autorizados de Certificación).
Mexico has been a pioneer in electronic invoicing and using more modern digitalization systems when compared to other countries worldwide. The process began in 2004 with the introduction of digital invoices, and in 2011, SAT launched the CFDI system, which became mandatory across sectors. Over time, it evolved through versions 3.3 and 4.0, with the latter being the currently valid standard.
The CFDI system requires that every transaction be fiscalized online at the moment of sale. All CFDIs are stored digitally and archived for at least five years, ensuring transparency and traceability intact.
This fiscalization model allows businesses to manage their tax obligations efficiently, with a strong focus on digital certificates, real-time validation, and secure archiving. By fully embracing a digital model for all transactions in scope, Mexico ensures better tax administration, combats fraud, and provides businesses with a streamlined, modernized way to comply with fiscal regulations.
Other news from Mexico
Types of Digital Tax Receipts (CFDI) in Mexico
Public
Mexico
Author: Tara Nedeljković
Mexico
Author: Tara Nedeljković
In Mexico, taxpayers must issue Digital Tax Receipts (CFDI) for all transactions. Key CFDI types include Income, Expenditure, Transfer, Payroll, Payment, and Withholding. Compliance ensures transparent accounting, legal adherence, and supports financial reporting, ultimately fostering trust with customers and the SAT for retailers. In Mexico, issuing Digital Tax Receipts (CFDI) is mandatory for al... Read more
Mexico and CFDI: How Tax Regimes Affect Issuance of Digital Tax Receipts
Mexico
Author: Tara Nedeljković
In Mexico, the tax regime governs how individuals and companies must manage taxes and issue CFDIs. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Mexico’s 2026 Tax Reform Tightens E-Invoicing Regulations and Adds Criminal Sanctions
Public
Mexico
Author: Ema Stamenković
Mexico
Author: Ema Stamenković
The reform mandates that CFDIs must reflect genuine transactions, with false or simulated invoices losing all tax effects and exposing issuers, recipients, and intermediaries to criminal liability. It grants the SAT expedited powers under new Articles 49 Bis and 29-A Bis CFF to verify CFDI authenticity, suspend digital certificates, and publish false-receipt findings, while the amended Article 113... Read more
From Cash to Digital: How Electronic Payments Are Transforming Mexico’s Financial System
Mexico
Author: Tara Nedeljković
In Mexico, POS systems must record official payment codes (e.g., “01” for cash, “03” for electronic transfer) on CFDI electronic invoices, with retailers required to support key methods like cash, cards, transfers, and vouchers. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
How Are VAT Rates Displayed on Mexican Digital Receipts and Invoices (CFDI)?
Mexico
Author: Tara Nedeljković
In Mexico, VAT (IVA) must be documented through CFDI e-invoices, which include detailed tax specifications for each item and follow the standardized XML schema to ensure consistency and compliance. The specifics are set out as follows. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Mexico’s 2026 Economic Package: New Digital Platform Tax Obligations
Public
Mexico
Author: Tara Nedeljković
Mexico
Author: Tara Nedeljković
The package does not introduce new general taxes but raises IEPS rates for certain goods and aims to boost tax revenues by 5.7% in 2026. Businesses must prepare for expanded reporting requirements and integration with CFDI 4.0, with Congress set to approve the package by November 2025 and SAT to release technical details later. The 2026 Economic Package in Mexico will impact digital platforms, onl... Read more
Discount Handling in Mexico’s CFDI System: Main Requirements
Mexico
Author: Tara Nedeljković
In Mexico’s CFDI system, discounts must comply with SAT rules by being recorded in the Descuento field at either the line-item or document level, never as negative product lines. Discounts given at the time of sale are included in the original CFDI of type Ingreso, while post-sale discounts require a CFDI of type Egreso referencing the original UUID. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login