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  • Marcelino Esparza

Materiality - A join responsibility forced by authorities

Updated: Dec 8, 2021



MATERIALITY

This term conceptualizes how the authority transfers or shares the responsibility of supervising commercial counterparties.

That is to say, at present for a company or taxpayer it is no longer enough to get customers to sale its products, nor to identify the suppliers that provide the best quality products, at the best price, and with the best times and conditions of delivery.


In the case of clients, it is necessary to verify if it is not classified as EDOS (Company that Deducts Simulated Operations) or as EFOS (Company that Invoices Simulated Operations), and although there is no fiscal sanction in this case, it is advisable to evaluate with who establishes business relationships


On the contrary, in the case of providers. If any of them is classified as EFOS, it converts the CFDi receiver into EDOS with severe consequences.

1. Fine for having simulated operations

2. Appear on the SAT blacklist, which would cause customers to stop doing business with the company

3. Non-deductibility of the expense associated with that provider

4. Non-accreditation of VAT associated with operations with that supplier


In the above case, the authority will require evidence of the materiality of the operations with the suppliers. In other words, it is necessary to show without a doubt that the supplier has the means to develop and provide the services it offers us, in terms of facilities, machinery, personnel, and skills.

How can it be demonstrated? Through plans, SAT visits, emails, quotes, financial reports, purchase orders, sales presentations, tax returns, etc. But since any of these can be altered, the authority will only take them as valid if they are stamped by an authorized provider. This seal or electronic signature is called "Certain Date"


Considering that the classification of taxpayers in the SAT list is always changing, it is necessary to adjust the processes in companies to collect, seal, and store all mentioned documentation. It is also important to have the means for an agile consultation in case the authority requires it.


Are we ready to fulfill this responsibility?

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