Mexico’s VAT Fraud Crackdown Needs True Real-Time Invoice Verification, Not Platform Enforcement

• Mexico’s new VAT fraud measure outsources enforcement to digital platforms like eBay and Amazon instead of implementing real-time fiscal invoicing.
• The reform digitizes enforcement but does not address the underlying system that enables invoice fraud.
• False VAT invoice fraud relies on unverifiable transactions and information delays, often using shell companies to issue fake but legally valid invoices.
• Mexico’s current system appears to have real-time validation but fails in practice, allowing over 8,000 shell companies to issue fraudulent invoices.
• Effective reform requires building true real-time transaction validation infrastructure, not just shifting responsibility to intermediaries.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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