Mexico operates one of the most sophisticated digital tax administrations in the world, managed by the Servicio de Administración Tributaria (SAT). With the mandatory implementation of CFDI 4.0 (Electronic Invoicing), simply having a Tax ID is no longer enough; the data must match the SAT’s records character-for-character.
For international businesses and digital platforms, complying with Mexican law means navigating the RFC (Registro Federal de Contribuyentes) and avoiding the dreaded “Listas Negras” (Blacklists) of simulated operations.
Introduction
The backbone of Mexico’s fiscal infrastructure is the SAT. Unlike jurisdictions where tax numbers are just for reporting, in Mexico, the RFC is the key to the real-time validation of every transaction.
For global enterprises, the challenge is verifying the 12-character Business RFC to ensure legitimate B2B trade. Missteps here prevent the issuance of valid invoices (CFDI), meaning your customers cannot deduct expenses, and you expose your business to a standard VAT liability of 16%.
