Educational guide
How to Invoice in Mexico
Comprobantes fiscales digitales (CFDI) authorized by a PAC are the norm for tax-valid invoices.
This page is for general education only. Tax law, e-invoicing rules, and invoice mandates vary by sector, threshold, and updates from authorities. Confirm requirements with a qualified accountant, lawyer, or government guidance for your situation.
Invoicing in Mexico revolves around the CFDI (Comprobante Fiscal Digital por Internet), the country's mandatory electronic invoice system. Every business must issue CFDIs through a SAT-authorized certification provider (PAC) for all taxable transactions. Paper or PDF-only invoices have no legal validity for tax deduction purposes in Mexico — only PAC-validated CFDIs are recognized by the Servicio de Administración Tributaria (SAT).
Each CFDI contains a digital fiscal seal (sello digital), the issuer's RFC (Registro Federal de Contribuyentes), the recipient's RFC, a detailed breakdown of IVA at 16% (or 0% for food, medicine, and exports), and any applicable ISR or IVA withholdings. The SAT validates every CFDI in real time and assigns a unique UUID (folio fiscal) that serves as the official identifier. Since the CFDI 4.0 update, the recipient's exact legal name, RFC, tax regime, and fiscal postal code must match SAT records precisely — any mismatch results in immediate rejection.
Businesses must also issue CFDIs for payroll (nómina), payments received (complemento de pago), and invoice cancellations. MXN is the mandatory currency for fiscal calculations, though foreign currency amounts can be shown alongside with the applicable exchange rate (tipo de cambio). SPEI, Mexico's interbank electronic transfer system, is the primary B2B payment method. Cash payments above MXN $2,000 are not deductible for the buyer. Records must be retained for at least five years from the date the related tax return was filed. Mexico's CFDI system is one of the most mature and comprehensive e-invoicing frameworks in the world, and working with a reliable PAC and a knowledgeable contador is essential for compliance.
Invoice checklist: common fields in Mexico
What buyers, auditors, and tax authorities often expect to see on a commercial invoice. “Required” reflects typical compliance expectations for registered businesses—not every sole trader scenario.
Seller Name & Address
Usually requiredRazón social and domicilio fiscal must match SAT records exactly. Since CFDI 4.0, even minor differences in capitalization or abbreviation cause PAC validation rejection.
Buyer Name & Address
Usually requiredRFC and nombre/razón social of the recipient are mandatory. Since CFDI 4.0, the buyer's régimen fiscal and código postal fiscal must also be included and must match SAT records exactly.
Invoice Number
Usually requiredFolio and serie are assigned by the issuer for internal tracking. The UUID (folio fiscal) is assigned by SAT upon PAC validation and serves as the unique legal identifier for the CFDI.
Invoice Date
Usually requiredFecha de expedición must be accurate. CFDIs should be issued no later than 24 hours after the transaction to avoid penalties. The date drives monthly tax return reporting periods.
RFC (Tax ID)
Usually required13-character RFC for businesses (persona moral) or 12 characters for individuals (persona física). Both the issuer's and recipient's RFCs are mandatory fields validated against SAT's registry.
Tax Breakdown
Usually requiredIVA rate (16% or 0%) and amount, IEPS (special production and services tax) if applicable, and any ISR or IVA withholdings (retenciones) must be itemized per line with their tax factor type.
Currency
Usually requiredMXN is required for fiscal calculations. Foreign currency amounts can be displayed but the exchange rate (tipo de cambio) must be documented. SAT publishes daily reference rates.
Uso de CFDI
Usually requiredThe buyer must specify the tax use code indicating how they will deduct the expense (e.g., G03 for general expenses, S01 for no fiscal effect). An incorrect uso de CFDI may require cancellation and reissuance.
Método de Pago / Forma de Pago
Usually requiredMétodo de pago indicates whether payment is complete (PUE) or in installments (PPD). Forma de pago specifies the payment method used (transfer, card, cash, etc.) from SAT's catalog.
Tax and regulatory themes in Mexico
IVA (VAT)
General rate 16% on most goods and services. Zero rate (0%) applies to food, medicine, and exports. Exempt categories include medical services, education, and residential rent.
ISR Withholding
Businesses must withhold ISR (income tax) on payments to individuals for professional services (10%) and on certain other categories. Withholdings appear as retenciones on the CFDI.
CFDI Mandatory E-Invoicing
All fiscal invoices must be CFDI issued through a PAC (authorized certification provider) and validated by SAT. Since CFDI 4.0, the recipient's name, RFC, régimen fiscal, and postal code must match SAT records exactly.
Popular payment methods in Mexico
Methods commonly used for B2B and freelance payments. Availability depends on banks, platforms, and contract terms.
- SPEI (interbank electronic transfer)
- Transferencia bancaria
- Tarjeta de crédito/débito
- Efectivo (cash, limited to MXN $2,000 for deductible expenses)
- CoDi / wallet digital
Business and cultural tips for Mexico
- Always verify the buyer's RFC, régimen fiscal, and código postal against SAT records before issuing a CFDI 4.0 — mismatches cause rejection.
- Issue CFDI promptly; late issuance or missing complementos de pago creates problems during SAT audits and monthly declarations.
- Mexican businesses expect the CFDI XML and PDF (representación impresa) — both are part of the standard deliverable.
- Cash payments above MXN $2,000 are not deductible for the buyer, so always offer SPEI or card options for larger amounts.
- When a buyer requests a cancellation, respond promptly — SAT requires the recipient to accept or reject cancellation requests within a limited timeframe.
- For installment payments (PPD), issue the corresponding complemento de pago within 10 days of receiving each payment to keep your records aligned with SAT.
- Confirm the buyer's uso de CFDI code before issuing the invoice. An incorrect code requires cancellation and reissuance, which is time-consuming for both parties.
- Keep your digital fiscal seal (e.firma and CSD) certificates current. Expired certificates block all CFDI issuance until renewed through SAT.
Invoicing in Mexico: common questions
Invoicing guides for other countries
Prefer a product overview for this market? See Billed for Mexico.
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