CFDI Compliance in Mexico: Key Tax Regime Rules for Retailers and Wholesalers

• In Mexico, the tax regime determines how individuals and companies pay taxes, declare income, and issue CFDI (Digital Tax Receipts), which are validated by the SAT for compliance.
• The SAT system checks that CFDIs match the taxpayer’s registered activity and legal status; inconsistencies can lead to rejected or invalid receipts and possible SAT notifications to correct discrepancies.
• Retailers must issue Income CFDI (I) for sales, Payment CFDI (P) for installment payments, and Exit CFDI (E) for returns, directly impacting their operations and finances.
• Wholesalers issue Income CFDI (I) for sales, Transfer CFDI (T) for moving goods, and must ensure correct tax withholdings, especially under the Simplified Trust Regime (RESICO PM).
• Proper CFDI management and adherence to the tax regime are essential for legal compliance and fiscal integrity for both retailers and wholesalers in Mexico.

Source: fiscal-requirements.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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