• COVID-19
  • Insights
  • Who We Help
    •   Industrial Automation
    •   Manufacturing & Distribution
    •   A&E Professional Services
    •   International Businesses
      • ◦   Expanding Outside the U.S.
      • ◦   Expanding to the U.S.
  • Services
    •   COVID-19
      • ◦   Cash Flow Confidence Assessment
      • ◦   Maximize Your Loan Forgiveness
      • ◦   5 Key Focus Areas
      • ◦   COVID-19 Resource Center
    •   Client Accounting
      • ◦   Software Solutions
      • ◦   Accounting Support
      • ◦   Reporting
    •   Tax
      • ◦   R&D Tax Credit
      • ◦   Tax Credits & Incentives
      • ◦   Tax Structure
      • ◦   Federal Tax
      • ◦   State & Local Tax
      • ◦   Personal Tax
      • ◦   Other Tax Filings
    •   Advisory & Assurance
      • ◦   Assurance Levels
      • ◦   Reporting
      • ◦   Employee Benefit Plan Audits
      • ◦   Technical Accounting & Reporting
    •   Consulting
      • ◦   Data Analytics
      • ◦   Transaction Services
      • ◦   Business Planning
      • ◦   Succession & Exit Strategies
    •   International
      • ◦   International Tax
      • ◦   Foreign Direct Investment
      • ◦   Global Expansion
      • ◦   International Accounting
  • Events
  • Careers
    •   Why C&M
    •   Students
      • ◦   Campus Events
      • ◦   Internships
      • ◦   Reach Beyond Program
    •   Experienced Professionals
      • ◦   Team member profile videos
    •   Opportunities
    •   Employee Journals
    •   Office Tour
  • About Us
    •   How We Help
      • ◦   Service Approach
      • ◦   Affiliations
      • ◦   Communications & Technology
    •   Meet Our Team
    •   Testimonials
    •   Our Videos
    •   Our Story
  • Contact Us
  • Subscribe
CHANGE COUNTRY:
  • United States
  • 中国
  • Client Login
Clayton & McKervey Logo
  • COVID-19
  • Insights
  • Who We Help
  • Services
  • Events
  • Careers
  • About Us
  • Contact Us
  • Subscribe
    • Most Recent Insights
  1. Home
  2. Insights
  3. Mexico’s Payment Receipt Complement: Are You Ready for it?

Mexico’s Payment Receipt Complement: Are You Ready for it?

Posted by Tim Finerty and Carlos Calderon on October 19, 2018

Tim Finerty Tim Finerty

The Mexican government has become more concerned over reconciling invoices and payments in recent years, resulting in new legislation requiring a “payment receipt complement” for commercial transactions between a buyer and a seller requiring transactions to be paid in installments. This document is electronically generated, transmitted and encrypted for added security. It commits the seller to deliver the service or product, and the buyer to make the payment according to what is specified.

Starting November 1, 2018 the Mexican tax authority will begin enforcing the use of a payment complement along with the electronic receipt, attached to the defined standards by the Servicio de Administración Tributaria (SAT). As such, every payment now needs to be tied to the electronic invoice for each transaction. This protocol used to be optional and was not used by most companies. Mexico made this practice mandatory in attempt to improve poor business practices and ensure higher quality procedures and reporting, according to SAT.

How does it work?
The payment receipt complement should be incorporated to the electronic receipt issued in the reception of partial or full payments. Proof of payment goes to SAT, and to the buyer, each time a payment is made.

Despite the numerous requests for an extension to this process, the SAT has finally approved the November 1, 2018 start date. Therefore, it is essential that the information received by the taxpayers be precise to avoid penalties.

To meet this new requirement on the fiscal payment processes, technology plays a key role. Some company ERP systems may be subject to adjustments, for example, or may require external suppliers to help generate the payment receipt complement with efficiency and security. It will be critical to adapt an ERP systems that complies with new regulation.

Advantages
A few of the advantages of the new payment receipt complement include:

  • No false duplication for income when payments are made in installments
  • Cancellation of invoices
  • Payments made towards the end of the year will be known, making it easier to account for an expense
  • Payments will be automatic and will lead to less errors

To learn more, contact Clayton & McKervey.

Our team is always ready to help.

Please contact us for more information.

Tim Finerty

Tim Finerty

Shareholder, Industrial Automation

Contact Tim   |   Read Tim's bio

Carlos Calderon

Manager, International Consulting

Contact Carlos   |   Read Carlos's bio

related news

How to Calculate R&D Tax Credits

As we’ve seen in the first two installments of this series, business owners often miss out on the R&D tax credit opportunity and the bottom-line infusion it can provide. Many…

Read full story

Doing Business in Mexico: What to Expect this Year

Without a doubt, this year will be interesting for Mexico. To start, it’s an election year and we all know what that means…a lot of uncertainty. As the global pandemic…

Read full story

What Expenses Qualify for R&D Tax Credits?

The R&D tax credit is one of the most overlooked opportunities to boost your bottom line. Many business owners fail to claim it under the mistaken belief that they’re not…

Read full story

Clayton & McKervey Launches The Sound of Automation Podcast

Media Contact: Denise Asker, dasker@claytonmckervey.com; 248.936.9488 Southfield, Mich.—February 17, 2021—Clayton & McKervey, a certified public accounting and business advisory firm helping growth-driven companies compete in the global marketplace, is excited…

Read full story

Misconceptions About the Research & Experimentation Tax Credit

As companies put more emphasis on Industry 4.0 and business processes become more automated and accessible, the opportunities for Research & Experimentation tax credits increase. The Research and Experimentation (R&E)…

Read full story

Categories

Jump directly to the topics that matter to you most.

  • A&E Professional Services
  • About Us
  • Advisory & Assurance
  • Business Owners
  • C&M Press Releases
  • Careers
  • China Consulting
  • Clayton & McKervey
  • Client Accounting Services
  • Consulting
  • COVID-19
  • Data Analytics
  • Estate Planning
  • Expanding Outside the U.S.
  • Expanding to the U.S.
  • From the President
  • Industrial Automation
  • International
  • Manufacturing & Distribution
  • Mexico Consulting
  • Podcasts
  • Private Client Services
  • Tax & Tax Credits
  • Transaction Services
  • Videos

Authors

Read news direct from our managers and stakeholders.

    • Ben Smith
    • Beth Butchart
    • Bryan Powrozek
    • Carlos Calderon
    • Casey Haggerty
    • Clayton & McKervey
    • Dave Van Damme
    • Denise Asker
    • Eric Lin
    • Jim Biehl
    • Julie Killian
    • Kevin Johns
    • Margaret Amsden
    • Miroslav Georgiev
    • Nina Wang
    • Rob Dutkiewicz
    • Ruben Ramirez
    • Sarah Russell
    • Sue Tuson
    • Tarah Ablett
    • Teresa Gordon
    • Tim Finerty
    • Tim Hilligoss
    • Wendy Reedy

Additional Resources

Additional news from Clayton & McKervey can be found below.

  • Subscribe to our email newsletter
  • View upcoming events
  • Contact us to let us know how we can help you
  • Main Content
  • Related Insights

Mexico’s Payment Receipt Complement: Are You Ready for it?

Posted by Tim Finerty and Carlos Calderon on October 19, 2018

Tim Finerty

The Mexican government has become more concerned over reconciling invoices and payments in recent years, resulting in new legislation requiring a “payment receipt complement” for commercial transactions between a buyer and a seller requiring transactions to be paid in installments. This document is electronically generated, transmitted and encrypted for added security. It commits the seller to deliver the service or product, and the buyer to make the payment according to what is specified.

Starting November 1, 2018 the Mexican tax authority will begin enforcing the use of a payment complement along with the electronic receipt, attached to the defined standards by the Servicio de Administración Tributaria (SAT). As such, every payment now needs to be tied to the electronic invoice for each transaction. This protocol used to be optional and was not used by most companies. Mexico made this practice mandatory in attempt to improve poor business practices and ensure higher quality procedures and reporting, according to SAT.

How does it work?
The payment receipt complement should be incorporated to the electronic receipt issued in the reception of partial or full payments. Proof of payment goes to SAT, and to the buyer, each time a payment is made.

Despite the numerous requests for an extension to this process, the SAT has finally approved the November 1, 2018 start date. Therefore, it is essential that the information received by the taxpayers be precise to avoid penalties.

To meet this new requirement on the fiscal payment processes, technology plays a key role. Some company ERP systems may be subject to adjustments, for example, or may require external suppliers to help generate the payment receipt complement with efficiency and security. It will be critical to adapt an ERP systems that complies with new regulation.

Advantages
A few of the advantages of the new payment receipt complement include:

  • No false duplication for income when payments are made in installments
  • Cancellation of invoices
  • Payments made towards the end of the year will be known, making it easier to account for an expense
  • Payments will be automatic and will lead to less errors

To learn more, contact Clayton & McKervey.

Our team is always ready to help.

Please contact us for more information.

Tim Finerty

Shareholder, Industrial Automation

Contact Tim   |   Read Tim's bio

Carlos Calderon

Manager, International Consulting

Contact Carlos   |   Read Carlos's bio

related news

How to Calculate R&D Tax Credits

As we’ve seen in the first two installments of this series, business owners often miss out on the R&D tax credit opportunity and the bottom-line infusion it can provide. Many…

Read full story

Doing Business in Mexico: What to Expect this Year

Without a doubt, this year will be interesting for Mexico. To start, it’s an election year and we all know what that means…a lot of uncertainty. As the global pandemic…

Read full story

What Expenses Qualify for R&D Tax Credits?

The R&D tax credit is one of the most overlooked opportunities to boost your bottom line. Many business owners fail to claim it under the mistaken belief that they’re not…

Read full story

Clayton & McKervey Launches The Sound of Automation Podcast

Media Contact: Denise Asker, dasker@claytonmckervey.com; 248.936.9488 Southfield, Mich.—February 17, 2021—Clayton & McKervey, a certified public accounting and business advisory firm helping growth-driven companies compete in the global marketplace, is excited…

Read full story

Misconceptions About the Research & Experimentation Tax Credit

As companies put more emphasis on Industry 4.0 and business processes become more automated and accessible, the opportunities for Research & Experimentation tax credits increase. The Research and Experimentation (R&E)…

Read full story

Categories

Jump directly to the topics that matter to you most.

  • A&E Professional Services
  • About Us
  • Advisory & Assurance
  • Business Owners
  • C&M Press Releases
  • Careers
  • China Consulting
  • Clayton & McKervey
  • Client Accounting Services
  • Consulting
  • COVID-19
  • Data Analytics
  • Estate Planning
  • Expanding Outside the U.S.
  • Expanding to the U.S.
  • From the President
  • Industrial Automation
  • International
  • Manufacturing & Distribution
  • Mexico Consulting
  • Podcasts
  • Private Client Services
  • Tax & Tax Credits
  • Transaction Services
  • Videos

Authors

Read news direct from our managers and stakeholders.

  • Ben Smith
  • Beth Butchart
  • Bryan Powrozek
  • Carlos Calderon
  • Casey Haggerty
  • Clayton & McKervey
  • Dave Van Damme
  • Denise Asker
  • Eric Lin
  • Jim Biehl
  • Julie Killian
  • Kevin Johns
  • Margaret Amsden
  • Miroslav Georgiev
  • Nina Wang
  • Rob Dutkiewicz
  • Ruben Ramirez
  • Sarah Russell
  • Sue Tuson
  • Tarah Ablett
  • Teresa Gordon
  • Tim Finerty
  • Tim Hilligoss
  • Wendy Reedy

Additional Resources

Additional news from Clayton & McKervey can be found below.

  • Subscribe to our email newsletter
  • View upcoming events
  • Contact us to let us know how we can help you

Website

  • COVID-19
  • Insights
  • Who We Help
  • Services
  • Events
  • Careers
  • About Us
  • Contact Us
  • Subscribe

Location

+1 248.208.8860
2000 Town Center
Suite 1800
Southfield, MI
48075 | USA

Connect

  • Events
  • Newsletter
  • Client Login

Social

  • LinkedIn
  • Facebook
  • Twitter
  • Glassdoor
  • YouTube
  • Instagram

Awards

DFP Top Work Places Best & Brightest
Prime Global

Tax | Accounting | Assurance | Consulting | Highly technical and accessible team of CPAs helping growth driven, closely held, middle market companies compete in the global marketplace. Michigan-based accountants and advisors focused on helping business owners in the United States and throughout Europe and China.

Privacy Policy Disclaimer

© 2021 Clayton & McKervey