The implementation of automated electronic audits in Mexico is a pivotal transition in global compliance. Triggered anytime there is a discrepancy between a company’s tax payments and its e-invoicing, fiscal reporting or vendor/customer records, these audits have the dual benefit to Mexico’s government of eliminating error-prone manual processes and minimizing the resources needed to conduct an audit. It’s no doubt that tax authorities around the globe are watching the results of this new process, which launched earlier in September, and they now have the first glimpse of success.
In November, the SAT (Mexico’s tax authority) reported that it had already conducted 11,000 audits using its new, automated processes. As a result of these audits, 5,358 fines have been levied for a total of 55.8 million pesos – and 565 establishments have been closed. Under the new process, taxpayers have three days to respond in the event an error is found, and 15 days to make adjustments/corrections. If the taxpayer cannot or does not justify the irregularities detected, fines ranging from 1,210 to 77,580 pesos are incurred. Any business with a repeat incident of non-compliance may have its operations closed for up to 15 days. For a complete overview of this process, download our new infographic, A Guide to Electronic Audits in Mexico.
These audits are a logical evolution of the electronic invoicing and reporting requirements that have become the norm in Latin American countries, and they are quickly spreading across the globe. As Mexico continues on this initial momentum to realize decreased costs and increased revenues through the implementation of such audits, we can expect more governments to follow suit. That’s why enterprises cannot afford a decentralized, reactive approach to compliance. The trend toward increased mandated reporting and automated processes is only picking up pace, meaning companies need to be thinking about a holistic, global approach to compliance. Taking cues from these governments, smart corporations are automating processes to minimize compliance and reduce error risks. In the wake of electronic audits, this method will prove to be the only effective compliance solution.
As noted, with the reality of these electronic audits, accurate, seamless compliance in Mexico is more important than ever. Join us for a webinar on Thursday, December 15 to discuss reducing compliance risks in Mexico
The post Mexico Announces E-Audit Revenue of 55.8 Million Pesos appeared first on Sovos Compliance.
About the Author
Steve Sprague's electronic invoicing and middleware integration expertise stems from nearly twenty years of experience in the industry. As General Manager of Invoiceware by Sovos, Mr. Sprague manages global messaging, product strategy and field enablement which has led to the firm’s double-digit revenue/sales growth in the last three years.More Content by Steve Sprague