Are you aware of the importance of tax validation in your expense reports?
Updated: Feb 10
The implementation of electronic invoicing has long been promoted by governments with the aim of reducing tax evasion.
Today, validating Digital Tax Receipts via the Internet is one of the most important tasks for companies, although it has also been one of the main problems related to electronic invoicing. In Mexico, the Internet-based Digital Invoices, known as CFDI's, are electronic invoices that back up the expenses issued and commercial transactions of the taxpayers, so it is necessary to validate them by the SAT.
Why is it essential to validate the CFDI?
One of the most important elements for validating invoices is to avoid and prevent possible fraud by means of manipulated documents. These may seem very similar to the originals, but the reality is that they are not official receipts for deducting or declaring taxes.
It is important for a company to validate the CFDI and the best thing to do is to delegate this task to a specialized tool that allows you to automate. This will be able to carry out the necessary processes to check its validation and verify if the information matches the issued CFDI.
What are the risks of not doing it correctly?
The requirement to validate the invoices must be on both sides, on the one hand, the issuer must ensure that the invoice is made correctly and on the other hand, the recipient must check the information and the accuracy of the tax document.
If any of the parties is not certain of the validity of the invoice, this could constitute an infraction established in the tax code, specifically in Article 113, which establishes that these invoices are "tax receipts that cover non-existent or false operations or simulated legal acts". And the penalty for issuing false CFDIs ranges from three to six years in prison.
How to correctly validate the expense reports?
Currently, the process to validate the CFDI's can be done through tools, programs, or even through an Authorized Certification Provider (PAC), which are those that have the authorization of the SAT to generate and process the receipts with fiscal effects by electronic means and in a digital way. Once the provider has validated the receipt, it can be certified with the SAT's digital seal.
Many companies purchase SAP Concur to address travel expense management and control. At Axosnet we developed a tax validator that integrates only with SAP Concur, this automates the process of creating, classifying, and validating your expense reports, reducing the time of manual data entry, with the objective of helping your company with travel expense tax compliance through the tax validation of your XML's.
Already have SAP Concur and would like to have a tax validator integrated into your system?
Learn more about this integration, prevent fraud, save time, and gain better travel expense control.