Earlier this week, electronic invoicing among Mexican small and midsize enterprise (SME) taxpayers reportedly increased more than 300 percent compared with a year earlier. The news source El Economista attributed the increase to eInvoices becoming mandatory in the Latin American country on April 1.
However, eInvoice options have existed in Mexico for the last 10 years, according to E-Invoicing Platform. So what was the real reasoning for the push? And how was Mexico able to see such a jump in eInvoicing use among SMEs?
According to Gerardo Ruiz Rocha, secretary of the Mexican Association of Authorized Certification Provider (Amexipac), advances in eInvoicing have attracted attention worldwide, and Mexico is not the only country that had problems collecting and auditing. However, the nation represents a success story, Rocha said in a statement, reported the news source.
Mexico is tasked with exploring the benefits of electronic invoicing, Rocha said, and it will take over a year to adapt to cultural population changes and leave behind the resistance. In order to achieve that objective, Rocha explained that authorized certification providers (PAC) have worked with the Tax Administration Service (SAT) to provide taxpayers electronic billing services and solutions.
Big Names Help Make The Digital Push
Having the right connections is always a good thing, and when bigger names back eInvoicing, it is a little easier to encourage other firms to fall in line.
That aspect was in play with Mexico making the switch to eInvoicing, according to E-Invoicing Platform. Earlier this month, Barry Callebaut, a leading global supplier of high-quality chocolate and cocoa products, announced that he had selected Invoiceware International to lower the cost of implementing and maintaining electronic invoicing in both Mexico and Chile.
The news source explained that Invoiceware International’s solution simplifies Latin America eInvoicing and reporting compliance by providing several benefits, including reduced operating costs, improved business performance, economies of sale and comprehensive Latin America Compliance.
According to the news source, Invoiceware International has a comprehensive compliance platform for multinationals doing business in Latin America, and it can assist organizations that are looking to comply with a variety of mandates. These include to Mexico Comprobante Fiscal Digital a través de Internet (CFDI), Nomina Electronica and ChileDocumentos Tributarios Electrónicos (DTE) and Libros reporting.
“Multinationals are continuing to turn to the Invoiceware SAP Hybrid Cloud to maintain compliance, reduce support costs and limit the impact of the fiscal regulations on their global SAP ERP systems,” Scott Lewin, Invoiceware International President and CEO, said in a statement, according to the news source. “We are pleased to have Barry Callebaut utilizing our SAP Hybrid Cloud for eInvoicing to simplify compliance in both Mexico and Chile.”
Invoiceware International is becoming popular among multinational firms. Earlier this month, aerospace manufacturing company Brazil Nota Fiscal announced it had selected the firm to manage its eInvoicing processes in Brazil. The move is expected to help Brazil Nota Fiscal eliminate the project and IT burdens caused by the constantly changing regulations.
If this trend continues, it seems it’s just a matter of time before the whole world is onboard with eInvoicing. Will the first jump always be 300 percent? Maybe, maybe not. But it’s important for firms – in any nation – to take note of what the options are so they can make the best choice for their business operations.