How to go paperless in Mexico
Mexico has been pioneering electronic invoicing through its Comprobante Fiscal Digital por Internet (CFDI) system. CFDI replaces traditional paper invoices with secure, digitally certified documents issued and validated by the tax authority, Servicio de Administración Tributaria (SAT).
How CFDI works: Businesses use certified software to generate CFDIs, including transaction details and tax information. Sellers electronically send these invoices to buyers, who validate and accept them. The SAT also receives a copy, ensuring transparency and reducing fraud. This innovative system enhances efficiency, reduces fraud, and sets a global standard for digital tax compliance.