London, 19 May 2022: Tungsten Network, the world’s largest, compliant business transaction network, is warning that businesses in Mexico could face unprecedented interruption if they are not prepared for changes the government has made to electronic invoice protocols and requirements.
Electronic invoicing has been a legal requirement in Mexico since 2011. The Tax Administration Authority (SAT) has ruled that the current CFDI version 3.3 can be used until June 30, 2022. As of July 1, 2022, only the new CFDI version 4.0 will be accepted. This means businesses that have not updated their details and prepared for the change are at risk of their invoices not being paid. This could lead to major business and supply chain disruption, as well as a huge administrative overhead for some buyers.
Talking about the potential disruption, Ruud Van Hilten, VP of Compliance at Tungsten Network said, “we are worried that some businesses are heading to the 1st of July deadline totally unprepared. The tax authority in Mexico has already given an extension to the introduction of the CFDI 4.0, so despite all the distractions of a global pandemic and economic downturn businesses have had time to get ready. However, what concerns me is a lot of suppliers are leaving making the necessary changes to facilitate this updated requirement until nearer the deadline. I worry that the congestion caused across all industries doing this at once will cause a backlog of processing delays due to sheer volume. If you extrapolate that across all businesses in Mexico, it could lead to many not getting their invoices paid. And although that will focus the mind, it could be too late for some companies.”
Tungsten has been working with both suppliers and buyers to encourage preparedness. It has created a simple and straightforward process for the CFDI 4.0 to be implemented. But best practice dictates that it does have to be proactively instigated well in advance of July 1st.
Van Hilten continued, “I ask that businesses do not leave this all to the last minute as that could be too late. The congestion caused by everyone trying to get ready at once could be chaotic. Cash flow is a top priority for any business and by extension getting ready for CFDI version 4.0 should be too.
“I urge every business in Mexico, no matter what platforms they use to submit their invoices to check they are ready for July 1st. Nobody wants a payment crisis!”
About Tungsten Network
Tungsten Corporation (AIM: TUNG) is the world’s largest, compliant business transaction network. A leading global electronic invoicing and purchase order transactions network; Tungsten’s mission is centred on enabling a touchless invoice process allowing businesses around the globe to gain maximum value from their invoice process.
Tungsten processes invoices for 60% of the FTSE 100 and 68% of the Fortune 500. It enables suppliers to submit tax compliant e-invoices in 54 countries, and last year processed transactions worth over £220 billion for organisations such as Caesars Entertainment, Computacenter, GlaxoSmithKline, Kraft Foods, Mohawk Industries, Mondelēz International, Procter & Gamble, Shaw Industries, Unilever and the US Federal Government.
Founded in 2000 and headquartered in London, Tungsten has offices in the US, Bulgaria and Malaysia, employing over 227 people.