Sat Tarjetas de Crédito

Credit Card Scrutiny and Immediate Invoicing on Bankcard Payments

Several news and information are spreading over the Internet about the scrutiny on credit cards    enforced by the SAT (Mexican Tax Administration System) on the use of credit cards, which has raised doubts and set alarms amongst taxpayers.

Sat Tarjetas de Crédito
Sat fiscaliza tarjetas de crédito

It is true that SAT announced that starting 2020 taxpayers could be issued an immediate invoice when paying with credit card at a POS (Point of Sale) terminal. To do this, the RFC (Federal Taxpayer Registry) is associated to the bankcard in order to integrate the payment and invoicing processes and thus the corresponding receipt includes a QR code containing the invoice without having to give any additional information. This intends to simplify the invoice process to both taxpayer and the business issuing it.

 

BANK ACCOUNTS’ SCRUTINY

Even though the rumors are spreading and have startled the general public, this change does not mean extra scrutiny on bankcards, because this has already existed for over 10 years.

The authorities, regardless of the money being used for personal matters or business issues, already scrutinize every payment from its origin when done with a bankcard.

The tax discrepancy emerges when payments or movements are made for a higher quantity than the one declared to the authorities, and so when issuing an invoice at the moment of payment, this becomes irrelevant when scrutinized. When the expenditure is deductible according to the person’s fiscal activity, immediate invoicing applies otherwise it does not affect when registering the expenditure on the books.

The important issue here relies in making sure that the money we deposit into our bankcard or bank account corresponds to the declared income and also to the invoice issued as stated by the fiscal authorities.

If the taxpayer has a fiscal discrepancy, what will be done is calculate and charge the contributions generated by such income and add the corresponding fine. Our recommendation is to go over your tax situation over the past 5 years and update whatever is needed.

It is worth mentioning that every card holder is registered as a taxpayer (RFC), let them be housekeepers, employees, students, senior citizens, etc., including those who do not perform paid activities.

According to the authorities all those who issue invoices or transaction receipts are obliged to register before the SAT, and thus have to file a tax return that matches their income. Natural persons that have a bank or savings account need to register as well.

When opening a bank account we have to give information such as name, ID, address, etc. The bank has to submit these data to the SAT to validate the RFC, and if he or she is not yet registered then registration takes place. This has already existed for a while and are not changes derived by the Tax Reforms.

The Reforms ‘objective is to tackle and reduce tax evasion, therefore, authorities will be much more alert and will make sure that every taxpayer complies with their tax obligations. There will be immediate consequences at the first non-compliance, like cancelling the digital seal without notice until the taxpayer corrects the situation. The same fine applies when the declared income does not match the invoices issued.

As taxpayers, we should comply with our tax obligations adequately, prevention is the best defense, that is why we recommend asking tax advisors who are updated and prepared, preferably a multidisciplinary team, including accountants, lawyers and money-laundering experts who can offer a better precautionary overview to avoid headaches or tough sanctions.

Terán Rojas & Associates

Email: inquire@teranrojas.com

This article was written by the editorial team at Terán Rojas & Associates. You can find more articles and seminars at www.teranrojas.com. This article is property of TR & Associates and its reproduction requires the author’s written consent, as they have the rights to this piece of work. Copyright 2020. This article is a general explanation of the current fiscal issues at the time of publication. “This article may be contrary to the fiscal authorities’ interpretation.” For a given particular case we recommend to gather written information of the fiscal liabilities applicable to the case.