eInvoicing by country

Mexico has been at the forefront of digital tax transformation in Latin America, pioneering the implementation of mandatory eInvoicing for all taxpayers since 2014. Mexico’s model, based on the Comprobante Fiscal Digital por Internet (CFDI), is an influential example of a mature decentralized clearance system. Mexico’s tax administration agency (SAT or Servicio de Administración Tributaria) delegates the critical validation and stamping process to a network of certified third-party providers known as PACs (Proveedor Autorizado de Certificación).

The workflow is as follows:

• A business registers with the SAT and obtains two digital credentials: an electronic signature (FIEL or e.Firma) and a digital seal certificate (CSD).
• The issuer generates an invoice in the mandated CFDI 4.0 XML format.
• The XML invoice is sent to the business’s chosen PAC for validation. The PAC performs a series of checks on the invoice’s structure, content, and digital seals.
• If valid, the PAC “stamps” (timbrado) the invoice by adding a unique identifier (UUID or Folio Fiscal) and its own digital seal, making it legally valid.
• The PAC simultaneously sends a copy of the stamped CFDI to the SAT and returns the authorized invoice to the issuer.
• The issuer then delivers the authorized XML and a human-readable PDF to the buyer.To ensure timely tax information exchange, the issuer is obligated to communicate the invoice to the recipient within three days following issuance, while buyers can ask for a printed copy.

CFDIs cannot be cancelled unilaterally; the process must be initiated through the PAC and requires recipient approval within 72 hours. Invoices must be archived for 5 years. The PAC-based model creates a competitive market for compliance services, but the system remains highly prescriptive, demanding robust and compliant AP/AR systems.

The PAC also places a Digital Seal to authenticate the CFDI (Comprobantes Fiscal Digital por Internet), ensuring the invoice’s origin and legitimacy. Both the issuer and the recipient must maintain their respective Digital Seal Certificates (CSD) up to date. If the SAT suspends these certificates due to tax delinquency or other reasons, the generation of tax receipts is prohibited.