Whether you buy or sell any type of property, it is necessary that you have a CFDI of the transaction.
What Is A CFDI?
CFDI stands for “Digital Tax Receipt on the Internet”, which is the same as saying electronic invoice.
As of January 1, 2014, the new Income Tax Law published on December 11, 2013 in the Official Journal of the Federation entered into force, among the changes to the law, article 76 stands out, which reads as follows:
“Taxpayers who obtain income from those indicated in this Title, in addition to the obligations established in other articles of this Law, will have the following:
II. Issue tax receipts for the activities they carry out.
In short, for all properties that have been acquired from 2014 onwards, you must have the Digital Internet Tax Receipt (CFDI, also known as an invoice) of the purchase and sale operation as a requirement of the federal government.
What Happens If I Don’t Have The CFDI Of Buying And Selling A Property?
If you are going to sell your property, and there is no such tax proof (CFDI), the amount of $1.00 Peso will be considered as the purchase price of your property, and the SAT may charge you the Income Tax (ISR) considering the difference between the sale price and that single weight; normally the ISR is charged based on the difference in the price at which you are going The ISR can vary between 1.92% and 35% of the total difference, so not having the bill could cost you a lot of money.
How Should The CFDI Be Generated?
If the seller is a Moral ( Company ) or physical Person ( Persona fisica with business activity, he is obliged to generate the Digital Tax Receipt on the Internet (CFDI). If the seller does not fall under either of these two regimes, the Notary Public who carries out the operation must generate it.
The buyer’s regime is indistinct, in any case, you must receive your invoice.
The invoice/CFDI is almost as important as the deed itself, if you do not have the deeds for some reason the CFDI is more than enough to prove ownership of the property.
Having the corresponding CFDI does not exempt you from paying the ISR, but it helps to reduce it considerably. There are cases in which it is possible to exempt such tax on the sale of real estate.
Why Is the CFDI Or Invoice So Important?
The CFDI is the proof of the value of the transaction and this serves the seller to check the economic income and present his declaration to the Treasury authorities, and the buyer serves for future transactions to accredit the amount of the operation and pay taxes based on the value established on the invoice.
Not having the CFDI implies that at the time of future disposal the taxes will be calculated based on the total amount of the operation, directly impacting the taxes that will have to be paid for not having this tax receipt.
Applying for and having the CFDI in the sale of real estate is one of the many points that must be reviewed and taken care of when celebrating a sale of real estate.