May 23, 2022

Volume XII, Number 143

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May 23, 2022

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Mexican New Invoicing Obligations are Just Around the Corner

As of September 30, 2021, domestic transportation of goods within Mexico will have to be accompanied by a new tax requirement: the Bill of Lading Complement.

Regardless of whether such goods travel by land, rail, air, or sea, either using a company’s own vehicles or a trucking or transportation company’s, entities sending goods through the country will have to modify their electronic invoices ("CFDI," as per its acronym in Spanish) to include the requirements established on May 3, 2021, by the Tax Administration Service ("SAT").

As per the Bill of Lading Complement, requirements to be added in electronic invoices include: (i) type of transportation (national/international), (ii) detailed locations pertaining origin and destination, (iii) travel distance, (iv) relevant domiciles, (v) the quantity and description of the goods, (vi) vehicle identification number, (vii) operator’s name and domicile, and (viii) vehicle’s owner name, among others.

Lack of compliance with aforementioned requirements may trigger penalties, and authorities could also consider that the relevant CFDI is not deductible/creditable for income/value added tax purposes.

A number of practical application issues still linger, i.e. what happens if driver has to change its route due to an accident; if the goods are partially or fully rejected; security concerns regarding use of enhanced CFDI’s data, etc. It is strongly recommended to carry out a case-by-case analysis to identify whether the CFDI with the Bill of Lading Complement shall be included in your company’s operations and, if so, which type of invoice shall be issued.

© 2022 Foley & Lardner LLPNational Law Review, Volume XI, Number 231
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About this Author

Marcos Carrasco Menchaca International Trade Attorney
Partner

Marcos Carrasco-Menchaca provides advisory and consulting services related to international trade compliance, customs, free trade agreements, customs litigation and taxation on foreign trade, as well as rendering services in international business transactions and administrative litigation.

Marcos has broad experience in advising the implementation of governmental exportation programs, such as the registration of companies in the Mexican Maquila Program (IMMEX), VAT certification, Sectorial Promotion Programs (PROSEC) and Drawback, among others.

A recognized international...

52 55 5284 8546
Alejandro Nemo Gomez Strozzi, Foley Lardner Law Firm, Mexico, Corporate Law Attorney
Partner

Alejandro Gómez-Strozzi focuses his practice on providing advisory and consulting services related to international trade compliance, antidumping, customs, foreign trade and Mexican administrative law.

As a top international trade lawyer, he has advised major multinational companies in the automotive, steel and consumer products sectors. He provides advice regarding available foreign trade programs, tax implications of foreign trade operations, implementation of free trade agreements entered into by Mexico, customs procedures, trade compliance...

5255-5284-8561
Javier Valenzuela Padilla International Trade Foley & Lardner Mexico City, Mexico
Associate

Javier Valenzuela is an associate at Foley Arena in Mexico City. Javier focuses his practice on international trade and customs. He has represented clients in complex litigation and advisory regarding to trade and customs matters, including, NAFTA and other trade agreements, rules of origin, customs valuation, tariff classification, non-tariff barriers, and other compliance matters.

Javier has experience assisting clients to obtain IMMEX (Maquila) authorizations and other preferential programs that allow them to apply reduced duty rates and other logistic benefits. Tax matters...

011-52-55-5-284-8540
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