Tax Reforms 2025: Changes and Implications for Mexican Businesses

Simplifying taxes, improving equity, increasing tax revenues… There are several objectives pursued by any tax reform. It is a tool that governments use to adjust their tax systems. At the end of the process, it also involves changes that impact the obligations of taxpayers, whether individuals or businesses. In recent years, Mexico has undergone reforms affecting tax instruments. These include the Income Tax (ISR), the Value Added Tax (VAT), and the Fiscal Receipt (CFDI), or electronic invoice.

In this article, we review the new regulations approved this year. Specifically, we'll explore what affects electronic invoicing and what you should consider when updating your company's ERP.

Tax reforms 2025

This year's tax changes were approved in the Federal Tax Code, which affects Mexico City. They were also included in the 2025 Miscellaneous Tax Resolution (RMF), an annual document issued by the Tax Administration Service (SAT).

The use of electronic invoicing in Mexico has been mandatory for all taxpayers since 2014, although its implementation has been gradual since 2011. Over the years, the versions of the CFDI and its complements have been updated, with version 4.0 being the one required by the SAT since July 2023.

Other national provisions impact taxpayers starting this fiscal year. One of the most important taxes is the Special Tax on Production and Services (IEPS). It affects specific products such as alcoholic beverages, tobacco, and other high-consumption goods.

Compliance with tax obligations is essential for the country's revenue collection. With the 2025 tax reform, the Tax Administration Service (SAT) strengthens its control mechanisms and associated penalties.

Within the framework of reform, the Federal Taxpayer Registry is a key element for individuals and corporations. Mexican taxpayers must be registered for better control over income and expenses. The ultimate goal is to prevent tax evasion.

In this regard, a series of fines, surcharges, and enforcement costs apply. For example, penalties and additional charges are imposed for unfiled returns, late payments, or failures to deliver information. Another example is the cancellation of the Digital Seal Certificate (CSD), which prevents the issuance of electronic invoices. Tax offenses involving high amounts can also be considered serious and carry prison sentences.

From law to code: adaptive ERP

The fiscal name for electronic invoices in Mexico is the Digital Fiscal Receipt via the Internet (CFDI). It is the only available method for issuing and obtaining fiscally valid receipts for tax deduction.

The implementation of CFDI has been underway for several years, with different system providers in various modalities. In a context as dynamic as the tax reform process, an adaptable ERP becomes valuable. This is an enterprise resource planning system characterized by its ability to adapt to an organization's changing needs.

A responsive ERP allows you to integrate various functions and processes into a single platform. It's organized into modules that can be selected and combined. It allows you to customize processes, screens, and functionalities, as well as add new features and users. It facilitates integration with other systems, such as CRM, SCM, and enterprise software.

Electronic invoicing: SAP Mexico improves its processes

The mandatory electronic invoicing creates new possibilities for integrating an invoicing system. In the case of SAP, the firm has sufficient experience and tools available to implement the necessary adjustments.

The requirement to issue electronic invoices is an opportunity to improve processes in other related areas. For example, the invoice reception process is in the purchasing cycle. Pending invoices could be displayed on a monitor. The electronic document that was just uploaded to SAP ERP upon receipt could even be included.

The responsible party can approve invoices that meet the requirements. This way, the person originating the purchase request is also responsible for invoice acceptance and payment to the supplier. This is an improvement in the procurement process.

In short, the digitalization of tax processes strengthens the management of both states and private entities. In Mexico, the SAT is developing more efficient auditing practices. Meanwhile, technology companies, such as SAP, are working to optimize their processes and resources. The ultimate goal should be a more efficient distribution of obligations to achieve greater equity in benefits and less tax evasion.