Mexican Tax Invoice

In Mexico, the legal tax document for all commercial transactions is the CFDI (Comprobante Fiscal Digital por Internet) — an XML-based electronic invoice generated and digitally stamped by an authorized PAC (Proveedor Autorizado de Certificacion). Per Mexican tax law (Codigo Fiscal de la Federacion), all sales of goods and services must be documented with a CFDI for the transaction to be: (1) tax-deductible for the buyer and (2) reported to SAT (Servicio de Administracion Tributaria, Mexico's tax authority). CFDI 4.0 (current version) requirements: RFC (Registro Federal de Contribuyentes) of both issuer and receiver, fiscal regime, product description with SAT catalog code (clave de producto/servicio), unit of measure (SAT unit code), IVA at 16% (standard rate, calculated on subtotal), payment method (transferencia, cheque, efectivo), CFDI use (uso del CFDI — code indicating the buyer's tax treatment), and digital stamp (sello digital). For industrial B2B transactions: the CFDI must correctly identify the product using SAT product codes (e.g., 40161505 for V-belts, 40151512 for rubber sheet), and the IVA amount must be separately stated. An incorrectly issued CFDI cannot be used for tax deduction — this is a critical concern for Mexican industrial buyers. Per SAT regulations.