Mexico RFC Tax ID # Mexico CFDI 4.0 Invoice # Mexico RFC

Some time ago, there are a lot of Amazon sellers in Mexico are very anxious, starting from April 1, 2023, why my Amazon tax documents invoices can not be deducted? Some tax agents say they can be deducted, some say they can't be deducted, and each one of them is very reasonable, but many sellers say they haven't really figured out what the underlying logic of the Mexican tax SAT is. Below you can follow the green circle to understand a little bit, perhaps to give you a solution to the confusion!

contexts
Effective January 1, 2023, the Mexican version of the CFDI 4.0 invoice is effective, coexisting with version 3.3 for a period of time until March 31, 2023, and the only valid version of the invoice available for credits, receipts, and payment certificates in Mexico as of April 1, 2023 is the CFDI 4.0 version.

Difference between Mexican CFDI invoices before and after March 31, 2023?
01
In short, the difference between CFDI Version 4.0 invoices and Version 3.3 invoices is that in Version 4.0, when issuing an invoice, CFDI Version 4.0, on the one hand, mandatorily verifies that the invoice receives the tax information contained in the taxpayer's Certificate of Tax File Number (CSF), which contains:
Federal Taxpayer Registry RFC Tax ID Number 
Name or social cause (Nombre o Razón Social)
Purpose of payment (Uso de la Factura)
Postal code of the taxable address (Código Postal)
Régimen Fiscal (tax system)
The RFC number, name, reason for payment, zip code, and tax system of the recipient of the above invoice must be exactly the same as the taxpayer's (customer's) tax certificate; otherwise, the invoice cannot be issued.
On the other hand, CFDI 4.0 adds a new CFDI payment use S01 - SIN EFECTOS FISCALES for non-Mexican residents: the Chinese translation is "No Tax Impact", which is uniformly used when the recipient of the invoice is a Mexican resident abroad. This payment option is used when the recipient of the invoice is a Mexican resident abroad.
That is why if we sell platform sellers if the legal company name of the store, not completely with the RFC tax certificate is identical (even if the space, punctuation is not the same can not), is not able to obtain a valid Amazon warehousing, services, freight, packaging, etc. CFDI4.0 version of the invoice.
Why some sellers download invoices from the amazon tax library file that are not deductible after 2023-4-1?

02
To understand the reason, sellers friends in addition to checking the Mexican tax certificate CSF document company name, the reason for the tax system, but also have to understand why Amazon will give the seller to open a seller's tax ID "XAXX01010101000" of the CFDI4.0 invoice. And this tax code is not the seller's real tax code.
According to the official information of the Mexican SAT, the taxpayer who receives the CFDI invoice has no tax liability in Mexico, using the generic tax code XAXX010101000 if the taxpayer is a Mexican resident, or the generic tax code XEXX010101000 if the taxpayer is a non-Mexican resident, and must enter the code 616 - SIN OBLIGACIONES FISCALES (no tax liability) in the "tax system", defaulting to the zip code of its "taxable address". The code 616 - SIN OBLIGACIONES FISCALES (No Tax Obligation) must be entered in the "Tax System" field, and the same zip code as that of the biller's registration must be entered by default in the "Zip Code of Tax Address" field.
Therefore, if our seller receives an invoice from Amazon with the seller's tax code "XAXX010101000" or "XEXX010101000", it cannot be used for credit.
Why do invoices that are generally not deductible show a generic tax code of XAXX010101000?

03
Green Circle After sampling and comparison, we found that the CFDI invoices that cannot be deducted all show a generic tax code XAXX010101000, we did a test when using the official website of the SAT tax office to open invoices: if the name of the company receiving the invoice is not the same as that of the SAT tax office, the invoice can not be successfully generated, but can only be generated when choosing to use the generic tax code XAXX010101000, and the reason for payment is "no company name". XAXX010101000, the company name receiving the invoice can be written arbitrarily (that is, do not need to check with the SAT system RFC for the company name), the reason for the payment choose "no tax impact Sin efectos fiscales.", and the tax system can only be selected by default "No tax obligation Sin obligaciones fiscales." is the only way to successfully issue a CFDI invoice.
How do I issue a CFDI invoice to an overseas company with no tax liability?

04
What if a Mexican taxpayer invoices a foreign company that has no tax liability overseas? Select "XEXX01010101000" for the tax code of the company receiving the invoice, the name of the company can be filled in as you wish (no need to check with the SAT's tax code for the registered company name), select the country of the company receiving the invoice, e.g., China, and the reason for payment. Select "Sin efectos fiscales.", while the default tax system can only select "Sin obligaciones fiscales", and finally fill in the country of receipt of the invoice. Finally, fill in the tax identification number of the enterprise, such as the credit code number of China, so that the CFDI invoice can be issued successfully.
How to solve the problem of CFDI 4.0 invoice error?

05
From the above can be seen, get to the common tax ID is XAXX010101000 and common tax ID XEXX010101000 are not deductible invoices, because the receipt of invoices in Mexico does not need to hold a valid RFC tax ID, and is no tax obligations, do not need to pay the tax also no need to offset the tax refund. Therefore, if the seller is in line with the RFC registered tax obligations, but get the invoice can not be deducted, you can try to solve the following steps:
As a first step, if the seller is found to be invoiced XAXX01010101000 for the tax warehouse documents, it may be worthwhile to check whether the tax system of your RFC certificate is "Sin obligaciones fiscales" or "Sin obligaciones fiscales";
The second step, if not, then you need to check the RFC certificate above the company name, whether with Amazon's "Legal Business Name legal company name" is completely consistent, (case does not affect, but pay attention to any space, punctuation can not be wrong), it is best to RFC certificate to copy the company name to the Amazon backend company name to do the proofreading. The best is to copy the company name of the RFC certificate to the backend company name of Amazon to do the proofreading.
Finally, if in the first step you find that the tax system of the RFC certificate is registered as "Sin obligaciones fiscales", then you need to contact the tax agent to modify it to the correct tax system. After making the above changes, if you want to obtain a reissue of the invoice, you need to open a case and contact the sales platform to cancel the previous invoice and reissue it.
Finally: For non-Mexican companies, if the seller holds a CFDI invoice with the following conditions: correct RFC tax ID number, company name, seller's RFC address zip code, and a CFDI invoice with a tax regime other than 616 - SIN OBLIGACIONES FISCALES, we have decided to give the seller a credit, despite the fact that the CFDI is for the use of the S01 - SIN EFFECTOS FISCALES. Sin efectos fiscales. (because this is the system chosen for non-Mexican companies), we have decided to give the seller a credit. VAT as a transfer tax, VAT credit in the production and sales process is a right of the VAT taxpayer, if the taxpayer is willing to give up this right of credit, of course, is also legal. After all, for taxpayers, paying tax is an obligation, and deduction is a right.
The quality of tax agents in the market varies, it is necessary to choose qualified and professional accounting firms to avoid falling into the pit, and once the Mexican RFC tax agent is chosen it is difficult to replace, please be careful to choose the service provider. Green circle accounting firm is a cross-border e-commerce services, quality tax service providers, Amazon SPN, ebay Golden Eagle program, the United States more than the speed of sale through the preferred service providers, in Mexico RFC registration has a wealth of experience, strong strength, time to protect. Looking forward to becoming your trusted tax adviser, welcome to consult and cooperation.