Did you know that your business can save money associated with travel expenses? That's right. According to articles 27 and 28 of the Income Tax Law (ISR), both growing SMEs and large companies can deduct taxes on expenses associated with business travel, such as lodging, transportation, food, among others.
If the nature of your business requires certain employees to move from one region to another constantly, complying with the verification of digital tax receipts and obtaining the respective reimbursement could mean significant savings in the long run.
However, the process of collecting vouchers for tax purposes can be complicated for most taxpayers, since this operation involves investing a lot of time in detailed reviews of the tax activity. In addition to this, there is the fact that the authenticity of each voucher to be presented must be verified.
But what if we told you that we have the ideal technology to do all this work for you? In this post, we will talk about the importance of having a CFDI validator that can be integrated with your SAP Concur.
To put you in context, we show you the items and limits of expenses that you can deduct through the verification of tax receipts in the Tax Administration Service (SAT) and how a CFDI validator integrated with your SAP Concur system like AxosMoney can be a great benefit for your growing business.
What are the areas in which your company can save money and why is it important to validate a digital tax receipt (CFDI)?
Lodging: If the employee travels abroad, the limit of expenses that can be deducted for lodging in a hotel is 3,850 pesos per day, but if the employee stays in Mexico there is no established limit.
Transportation: This item does not have a limit amount because you cannot control the price of bus tickets, airplane tickets, or gasoline in case the employee travels in your car.
Food: If the trip is abroad it is possible to deduct a maximum of 1,500 pesos per day per person, while in Mexico the limit is 750 per day per person.
Transportation rental: This item is valid in case of traveling in a group and renting a van, truck, or car abroad, with a daily limit of 850 pesos; however, there is no limit on transportation if it is private, such as the Uber service.
The verification of digital tax receipts is a process in which the Tax Administration Service (SAT) is in charge of reviewing, checking, and controlling the activities of taxpayers in the issuance of electronic invoices through a PAC. Through this verification, both those who issue and those who receive invoices will have the certainty that the invoice complies with the requirements established by the regulatory body. This model was created with the purpose of providing greater security to the taxpayer in terms of tax verification. Most taxpayers think that thanks to the PACs, Authorized Certification Providers, the Verification of Digital Tax Receipts by Internet CFDI will no longer be required, but they are totally wrong.
It is necessary to have a validator that can be integrated with SAP Concur that allows them not only to issue, receive and keep invoices in a valid file but also to validate and verify them automatically in order to prevent possible fraud and reduce the costs associated with the payment of taxes.
When a business does not have this type of technology to validate travel-related expenses, it can commit tax fraud, since an electronic invoice cannot verify errors with the naked eye because it has special algorithms.
What are the consequences of committing tax fraud?
When the issuer and receiver of an electronic invoice do not comply with their validation commitments, they automatically incur fraud that may result in a fine or imprisonment for both parties. If either of the parties is not certain of the validity, they may incur in a crime for declaring tax receipts that cover non-existent or false transactions or simulated legal acts, and this could result in a penalty of three to six years of imprisonment.
Previously, the process of the validity of an invoice was complicated because the administrative process was face-to-face, however, as of 2014 the physical invoice disappeared, i.e. the paper representation, and the use of the electronic invoice was approved.
This can be a relief for companies where travel and the collection of associated expenses is a regular operation, as invoices are now electronic and their validation process is simpler and more automatic because they can be courted on the SAT platform.
Now that you know which items are considered as "travel expenses" and the consequences of not complying with the validation of tax receipts in the respective declaration, we present SAP Concur, the ideal technology to automate and integrate in one place all the expense, travel and invoicing processes.
What is SAP Concur?
SAP Concur is an ERP-integrable system specially designed to streamline the tasks of tracking and processing business travel expenses, thus helping to better control business finances.
Thanks to this travel and associated expense management solution, back-office managers can handle complex procedures seamlessly, thanks to the elimination of paperwork and the absolute reduction of errors associated with manual data entry, saving time and allowing managers to review other more strategic business processes.
With SAP Concur, employees can validate travel expense CFDIs automatically, capture receipt images and submit expense reports with a couple of clicks, and even check expenses before they are even spent!
Why use SAP Concur?
SAP Concur is the ideal technology to mitigate tax return risks, reduce costs and improve compliance and security standards efficiently.
One of the most common reasons why business expenses often get out of control is the cost associated with employee expenses. Fortunately, with SAP Concur, it's possible:
Automate travel expenses.
Tracking of unbiased approvals
Ensure compliance with spending policies.
Import feeds from multiple sources, including corporate credit card providers and travel suppliers.
To boost the productivity of all and have progressive and profitable business growth.
What solutions does SAP Concur offer for your business?
SAP Concur offers several tools that can help your business meet the challenges of day-to-day travel and expenses. Some of them are:
Expense management: this functionality allows you to track all expenses in one place, capture receipts and other process reports automatically, ensure compliance with expense policies, reimburse expenses to employees quickly, allow employees to review, submit and approve expense reports via mobile, etc. All these functionalities optimize expense management with electronic receipts, enable a complete financial picture in the ERP system, and reconcile business expenses in an accurate and secure way.
Concur travel: SAP concur helps you align your travel and expense policies with your current needs and make improvements to your existing travel program while prioritizing the safety of your employees. The Concur Travel functionality of this tool allows you to get accurate data on each traveler, support your employees with location records, stay up-to-date on the latest trends in corporate travel, track travel and get all the associated expense detail, make and manage reservations, submit routes and itineraries via the mobile app, and communicate internal policies to ensure compliance.
Concur Invoice: a purpose-built feature designed to reduce average invoice processing costs by more than 80% by eliminating paperwork, duplicate or late payments, and delayed email invoices.
With Concur Invoice, you can have a complete overview of your business cash flow while automating and monitoring your accounts payable management by capturing vital GST information and claiming 100% refunds, controlling and managing purchase-to-pay cycles, increasing cash flow, improving supplier payment discounts, minimizing security risks by ensuring compliance and gaining complete visibility into your financial components in real-time.
How to validate an electronic invoice through SAP Concur?
To validate the electronic invoice through SAP Concur you need to integrate it with a special fiscal validator such as AxosMoney. This App is specially designed to integrate with SAP Concur and prevent your company from making mistakes, fraud, and delays in the processing of electronic invoices, electronic invoicing, or CFDI digital receipts because it makes it possible for the administration to enter and validate each invoice by simply attaching it in XML or PDF format from the cell phone.
All you have to do is:
Log in to the AxosMoney app.
Link your SAP Concur account with the app.
Enter your email address and choose the invoices you want to validate.
Forward XML and PDF invoices to AxosMoney email.
Within AxosMoney you will be able to see all the invoices that were sent for validation, and you will know their "valid" or "invalid" status.
If the invoice is valid, you will be able to select the invoice and classify it according to the corresponding expense. The list of expenses that appears in the app is the one your company has configured in Concur.
From the app, you will be able to select a report in Concur or create a new one and add the invoice as an expense in the Concur report.
Once you have added your expenses, you will have the information of the RFC, company name, amount, UUID, the status of the XML filled automatically.
You will have a preview of the PDF and XML, which will speed up your expense verification.
If the invoice is valid, you can select the invoice and classify it according to the corresponding expense, and you will automatically have the XML status filled in, which will speed up the expense verification.
With this tax validator, you will be able to comply with all SAT rules, generate XML blocks to avoid fraud, save time associated with the review of expenses by the expense and simplify the control of travel expenses in general.
Would you like to learn more about AxosMoney the tax validator for SAP Concur?
If you already have SAP Concur we recommend you purchase this special tax validator for SAP Concur. With this App, you can rest easy knowing that the expenses that your employees upload are not frauds and knowing that you are up to date and complying with the rules of the SAT.