CFDI (Mexico)
In Mexico, no transaction has tax validity until it is documented by a valid CFDI.
Definition
The CFDI (Comprobante Fiscal Digital por Internet) is the internet-based digital tax receipt used in Mexico. It is a structured XML file that covers not only sales invoices but also payroll receipts, credit notes, payment complements and other transactions.
The format is defined by the SAT (Servicio de Administración Tributaria), Mexico's tax administration, and evolves through successive versions (e.g. CFDI 4.0).
How it works
A CFDI becomes valid only after a certification process:
- The issuer builds the XML and signs it with its digital seal certificate (CSD).
- The document is sent to a PAC (Proveedor Autorizado de Certificación), a third party authorised by the SAT.
- The PAC validates, stamps (timbra) the document and adds the SAT's seal plus a unique identifier (UUID / Folio Fiscal).
The stamped CFDI then carries enforceable tax validity.
Good to know
Mexico is one of the historical pioneers of clearance e-invoicing; the CFDI is mandated for all businesses with no turnover threshold.
A human-readable printable representation may accompany the XML, but it is the stamped XML file, not the PDF, that is the authoritative tax document.