Mexico has spent the best part of 2014 implementing new tax requirements; our Americas expert gives a quick overview of the latest.

In an effort to be more transparent and accelerate tax processing, the Mexican Tax Authorities (SAT) implemented a series of new rules during 2014, including new rules on when and how to submit electronic accounting information as part of mandatory tax filings.

What do you need to do?

Awareness and action for each of these rule changes is the responsibility of the filing entity so we want to ensure you know about them and can make the necessary adjustments in your business in order to remain complaint and avoid substantial penalties.

You need to maintain accounting records through electronic systems that can create XML format files; those files must include:

  • Chart of accounts used during the period
  • Trial balance, with initial balances, movement for the period and final balances for each of the accounts of the taxpayer, including assets, liabilities, equity and results of operations (revenue, costs and expenses)
  • Information related to journal entries in the accounting records

Your files must be submitted by uploading the electronic files into the Tax Authority website.

If your electronic files contain errors, the SAT will notify though the Tax Electronic Mailbox.

All information should be available from now in case of inspection, but should be uploaded by January 2015 for all months July to December 2014.

How can you be prepared?

With a few simple steps on your part you can ensure you are prepared for the changes and they have a minimum disruptive impact on your operations.

  1. Continue to review updates published by the SAT
  2. Ensure an accurate mapping of your account ledgers is available, regardless of the electronic platform you use
  3. Design a plan to convert your current platform to the electronically acceptable XML format if you have not already done so
  4. Review alternative processes and methods with your accounting providers
  5. Consult your tax advisor for further directions

Read more about doing business in Mexico.