The entry into force of the new version 4.0 of the Electronic Invoice (CFDI for its acronym in Spanish) incorporated new requirements to consider them as complete and correct. Among others, the definition of the use of the CFDI, whose relevance should not be overlooked.
In accordance with article 29-A section IV of the Federal Tax Code (CFF), the digital CFDI must contain: The code of the Federal Taxpayer Registry (RFC), name or company name; as well as the zip code of the fiscal domicile of the person to whom it is issued, likewise, the key to the fiscal use that the receiver will give to the invoice must be indicated.
The use of the CFDI is the key that describes the utility or the purpose for which the invoice originates and from there determine the deduction of the goods included, as well as the accreditation of the taxes included in said CFDI. In other words, it is the reason for the transaction, therefore, the option that best describes its use should be selected.
Although including the use in the CFDI is not new and was already a mandatory field when filling out the invoice, the most recent change in this topic is the elimination of the “P01 – To be defined” option in the catalog. This implies that taxpayers who previously selected this option in a «hurry» or because they did not know under what concept to define the use of the CFDI, will necessarily have to delimit the use with the list of available options.
Correct definition of Use
The elimination of this option highlights the importance of correctly defining our economic activities and maintaining clear communication with our customers and suppliers to avoid errors in filling out invoices.
Today, the Tax Administration Service (SAT) has not given any fiscal consequences to the Use of the CFDI, however, in an audit the authorities could deny a deduction of the goods or merchandise, as well as the accreditation of the taxes included in the corresponding CFDI, under the argument of incorrect fiscal use. This frequently occurs in the case of fixed assets, when they are classified as an expense and not as an investment, since fixed asset investments are deducted each year according to its corresponding depreciation rate, while expenses are deducted as a whole in the fiscal year.
Another common mistake is not generating different invoices for each type of use, since one invoice cannot include different fiscal uses for different goods, having items that do not apply to the determined Use can cause the voucher to not be deductible. Currently, several businesses do not generate different CFDIs for the same purchase ticket, so a suggestion is to manage the purchase with the supplier so that the goods with the same Fiscal Use have their own ticket.
Likewise, if there is a discrepancy between the description of the goods, merchandise, service or the use or enjoyment indicated in the CFDI and the economic activity registered by the taxpayer in the RFC, the tax authority may update its economic activities and obligations to the tax regime that corresponds to it (art. 29-A section V of the CFF). Although taxpayers can submit a clarification to the SAT if they are dissatisfied with the update, it still implies being attentive to new obligations.
It must be considered that, once issued, the key or use of the CFDI cannot be modified. If the recipient gives a different use to that indicated in the UsoCFDI field, the SAT indicates that it must be canceled and replaced by the CFDI that contains the correct UsoCFDI key, in accordance with rule 2.7.1.29. of the Miscellaneous Tax Rules for 2022 and Annex 20 «Guide for filling out digital tax receipts online» version 4.0, published on the SAT Portal.
Canceling the CFDI entails other obligations, such as indicating the reason for the cancellation and doing it no later than the month in which the annual declaration for the year corresponding to said invoice is presented, so this must also be considered to avoid additional sanctions.
Keys
Let us remember that:
- Keys with “G” as the initial letter correspond to the acquisition of merchandise, returns, expenses.
- Keys with “I” as the initial letter correspond to Investments (fixed assets).
- Keys with “D” correspond to personal deductions, which by their nature are applicable only to individuals.
Learn more about Income taxes and VAT in Mexico
Contact us for questions or more information.
Tax Partner C.P.A. Mario Enrique Morales mario.morales@bmtc-dfk.com
Senior Tax Communications CPA Carla Torres carla.torres@bmtc-dfkc.om
The purpose of this article is merely informative. BMTC-DFK nor any of the firms affiliated with DFK International is responsible for the decisions made based on what is described in it. BMTC-DFK, S.C. is a member of DFK International, which is among the 10 main associations of Public Accounting Firms and Business consultants at the international level with a network of 24 offices in Mexico and 441 around the world. As part of this great network, we want to support you in meeting your tax obligations arising from doing business in Mexico.
