Changes to the Mexican Federal Tax Code (CFF) and Their Impact
Verifying whether an invoice is false will be a daunting task for taxpayers, as not everyone has the resources to prove the “materiality of operations” covered by the tax documents they issue or receive, warns experts.
New CFF Regulations and Their Implications
With changes approved by the Chamber of Deputies to the Mexican Federal Tax Code (CFF), starting in 2026, Digital Tax Documents for Internet (CFDIs) will need to cover actual or genuine transactions. This means taxpayers who issue (and receive) CFDIs must have the information and documentation to prove the “materiality of operations” covered by these tax documents.
Luis Pérez de Acha, a fiscal law specialist, explains that if even one false CFDI is issued by a taxpayer, all other documents they have issued will be considered false as well. Furthermore, their digital seal certificates will be temporarily restricted and then permanently revoked for both the issuer and receiver of these CFDIs.
Challenges in Proving Invoice Authenticity
Virginia Ríos, a member of the Fiscal Technical Commission at the Mexican College of Certified Public Accountants, states that taxpayers will find it difficult to gather evidence proving their invoices cover genuine operations, especially for service providers. Not everyone can collect the necessary evidence to demonstrate this to tax authorities.
Pérez de Acha adds that proving the “materiality of operations” to tax authorities has not been easy for taxpayers, with mixed and unfavorable outcomes in federal courts.
Ríos emphasizes that a single human error, such as an incorrect merchandise code, could automatically place a taxpayer under suspicion of being a “false invoice operator” under the new CFF regulations.
Potential Business-Breaking Sanctions
Ríos warns that restricting a company’s digital seal certificates means they can no longer issue invoices, leading to an inability to receive payments from clients and potentially driving the business into bankruptcy.
“I hope senators realize these new tax regulations will destroy many businesses and companies,” Ríos says.
If the CFF modifications remain unchanged in the Senate, tax authorities can initiate a “special procedure” to verify if a CFDI is false if they suspect it does not cover an actual operation. This procedure includes express home visits for taxpayers to prove the operations covered by the documents.
“This process begins with a presumption of falsity by the SAT,” Pérez de Acha cautions.
Key Questions and Answers
- What are the new changes to the CFF? Starting in 2026, CFDIs must cover actual or genuine transactions. Taxpayers must prove the “materiality of operations” covered by these documents.
- What happens if a taxpayer issues a false CFDI? All other documents issued by that taxpayer will be considered false, and their digital seal certificates will be temporarily or permanently revoked.
- How difficult is it for taxpayers to prove invoice authenticity? Many taxpayers lack the resources and evidence needed to demonstrate that their invoices cover genuine operations, especially service providers.
- What are the potential consequences for businesses? Companies may face bankruptcy if they cannot issue invoices due to the loss of digital seal certificates, as they cannot receive payments from clients.
- What is the special procedure initiated by tax authorities? Tax authorities can start a “special procedure” to verify if a CFDI is false, which includes express home visits for taxpayers to prove the operations covered by the documents.
