In recent years, tax authorities have experienced a significant increase in tax collection due to enhanced fiscal oversight. By utilizing algorithms to analyze information from Digital Tax Invoices (CFDis) and other fiscal reports, the Mexican Tax Administration Service (SAT) achieved over a 1,000% increase in tax collection between 2015 and 2023. In the last year, they collected $147.20 pesos for every peso invested in these efforts.
Compliance requirements imposed by the authority continue to rise. On one hand, the SAT has shifted the responsibility to taxpayers to verify the validity of fiscal documents and the tax status of suppliers. On the other hand, the authority aims for consistency between fiscal documents and other mandatory reports.
Aligning various internal data sources with those of clients, suppliers, and the government remains a formidable task.
SAP is driving the migration to its latest version, S/4HANA. While this transition presents significant challenges, it promises substantial long-term benefits. With HANA, SAP provides users with a robust fiscal reporting model. The Advance Compliance Reporting (ACR) module considers global reporting obligations as a standard base. In Mexico, meeting requirements such as Electronic Accounting policies, VAT reports, and DIOT has demanded considerable effort from technical and tax system teams.
Proper HANA/ACR parameterization, along with adjustments to S/4HANA’s standard reports, becomes one of the best options for ensuring tax compliance.
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