Tax and compliance for a business in Mexico: SAT, CFDI, IVA and ISR

Snapshot

A business in Mexico registers with the SAT under an RFC, issues CFDI 4.0 electronic invoices, charges and reports IVA, pays ISR on income, and keeps contabilidad electrónica, the electronic accounting filed with the SAT, as of 22 May 2026. A business account supports this by keeping company money separate and providing clean records. Rates and rules depend on the tax regime and change, so this is general information, not tax advice.

Tax authority and identity: The SAT, with an RFC for the business and the e.firma electronic signature for procedures.
Invoicing: CFDI 4.0 electronic invoices, issued through a certified provider and stored electronically.
Main taxes: IVA on goods and services and ISR on income, reported on a schedule set by the SAT.
Records: Contabilidad electrónica and a CLABE registered for tax payments and refunds.

Rules as of 22 May 2026Last reviewed 22 May 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

A business in Mexico operates inside a tax system run by the SAT, the Servicio de Administración Tributaria. The business holds an RFC, its tax registration number, and uses the e.firma electronic signature for many procedures. It issues CFDI 4.0 electronic invoices for sales, charges and reports IVA, the value added tax, pays ISR, the income tax, on its profits, and keeps contabilidad electrónica, the electronic accounting filed with the SAT. A business account does not change what you owe, but it keeps company money separate, supports the records behind your declarations, and supplies a CLABE used for tax payments and refunds. Rates and rules depend on the tax regime and change over time, so the points below are general information shown as of 22 May 2026 and not tax advice. Confirm your position with the SAT or a tax professional.

How tax and compliance work in Mexico

Every business and individual taxpayer in Mexico is registered with the SAT under an RFC and is assigned a tax regime, the régimen fiscal, which sets out the taxes due, the way declarations are filed, and the deductions available. The e.firma, the electronic signature issued by the SAT, secures many of these procedures. The day to day duties for most companies are issuing electronic invoices, reporting IVA, paying ISR and keeping electronic accounting. The exact obligations and deadlines depend on the regime and the size of the business, so confirm them with the SAT or a tax professional rather than assuming.

CFDI electronic invoicing

CFDI 4.0 is the only valid electronic invoice standard recognised by the SAT, and a CFDI must be issued for sales of goods and services that require a fiscal receipt. CFDI 4.0 requires the recipient name, tax address and tax regime to match the SAT records exactly, which makes accurate customer data important. Invoices are issued through a certified provider and stored electronically, and the figures feed directly into your accounting. Because validation rules are strict, check the current CFDI requirements before issuing.

IVA, ISR and electronic accounting

IVA, the value added tax, applies to most goods and services. A business charges IVA on its sales, can credit the IVA paid on its purchases, and reports the net amount on a schedule set by the SAT. ISR, the income tax, is calculated on taxable income and also reported periodically, with the precise rates and methods depending on the regime. Companies keep contabilidad electrónica, the electronic accounting filed with the SAT, which draws on invoices and bank records. A business account that keeps company and personal money apart makes this reporting cleaner and supports any review.

Compliance items to keep in order

Keep these items current, because gaps in invoicing or records are a common source of problems at declaration time. Verify with the SAT or a professional

The RFC, the Constancia de Situación Fiscal and the e.firma, all kept up to date, along with the correct tax regime for your activity.
CFDI 4.0 invoices issued and received through a certified provider, with recipient details that match the SAT records, and electronic storage of them.
IVA and ISR reporting on the SAT schedule, contabilidad electrónica filed as required, and a CLABE registered with the SAT for tax payments and refunds.

How to stay compliant

Confirm your tax regime with the SAT, since it sets which taxes you pay, how you file, and what you can deduct.
Set up CFDI 4.0 invoicing through a certified provider, keep customer tax data accurate, and reconcile invoices against your business account records.
File IVA and ISR and keep electronic accounting on the SAT schedule, and work with a tax professional where your situation is complex. Verify current rules with the SAT before acting.

Compare business accounts available in Mexico

These providers accept business customers in Mexico. Fees and eligibility shown as of 22 May 2026. Confirm current terms with the provider before applying.

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Questions about tax and compliance in Mexico

What is the SAT and RFC for a business in Mexico?

The SAT, the Servicio de Administración Tributaria, is the Mexican tax authority. The RFC is the tax registration number that every business and individual taxpayer holds with the SAT. A business uses its RFC on invoices, declarations and bank records, and the e.firma, an electronic signature from the SAT, is used for many procedures. Confirm your obligations with the SAT or a tax professional, as of 22 May 2026.

Does a business in Mexico have to issue CFDI electronic invoices?

Yes. CFDI 4.0 is the electronic invoice standard required by the SAT, and businesses issue a CFDI for sales of goods and services. CFDI 4.0 requires the recipient name, tax address and tax regime to match the SAT records exactly. Invoices are issued through a certified provider and stored electronically. This is general information, so confirm the current rules with the SAT or a tax professional, as of 22 May 2026.

What are IVA and ISR in Mexico?

IVA is the value added tax that applies to most goods and services, and ISR is the income tax on profits. A business charges IVA on sales, can credit IVA on purchases, and reports the net amount, while ISR is calculated on taxable income. Rates and rules depend on the tax regime and can change, so confirm the current figures with the SAT or a tax professional. This is general information, not tax advice.

How does a business account relate to tax in Mexico?

A business account keeps company money separate, provides records that support contabilidad electrónica, the electronic accounting filed with the SAT, and supplies a CLABE used for tax payments and refunds. The account itself does not change what you owe, but clean records make declarations and audits easier. Verify how to register your account for refunds with the SAT, as of 22 May 2026.

Tax rules, features, and eligibility change and vary by region. This page was last reviewed on 22 May 2026. Confirm current terms with the provider, the SAT, or a tax professional before acting.

Tax and compliance in Mexico