Mexico’s E-Procurement Plan Hampered by Delays

Mexico is working to become the latest nation to implement digital procurement strategies, a move studies show decreases wasted tax dollars and encourages private sector firms to follow suit. But then nation’s tax authorities have reportedly delayed the launch of the program.

According to E-Invoicing Platform, the nation’s tax service SAT has pushed back the implementation of the Contabilidad Electronica until April 3 of this year. According to the agency, authorities decided to delay the program launch after a consultation with several interested parties.

The new deadline was determined based on taxpayer requests, the SAT said.

According to E-Invoicing Platform and Invoiceware, despite the delay, the technical guidelines for e-invoicing submissions have not changed. The Mexican government will require validation of digital invoices for all sales, inbound procurement, travel and expense reports, and paychecks.

Reports highlighted several things for companies working with the Mexican government to consider when preparing for the implementation of the strategy. Among these revelations includes the fact that 95 percent of firms still process PDF invoices, and 90 percent of those do not contain a Purchase Order number, which will be required through SAT’s new guidelines.

E-invoicing technology conglomerates have been working with federal governments the world over to implement digital government procurement programs. Research shows that government implementation of such methods often spreads to the private sector once businesses realize the potential for cost savings and increased cash flow visibility with electronic invoicing.

Many companies, however, are still relying on outdated invoicing practices, according to new research from Billentis and Billtrust. The B2B sector is especially slow to adopt innovative digital procurement methods, though surveys suggest that businesses are warming up to e-invoicing and cloud services to save money and improve cash flow operations.