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  • Writer's pictureCristina Barragán Silva | L.D

Submitting a CFDI (Invoice) in a real estate sale and purchase: Is it really necessary?


In the past, in the purchase and sale of real estate, the public deed was enough to formalize the act and prove the acquisition cost; the deed became the actual invoice of the purchase and sale and was recognized by the tax authorities.


As of April 2014, through a miscellaneous resolution, a rule is issued in which it is expressed that in every real estate purchase and sale, an internet tax invoice must be issued. At this time, it becomes mandatory to issue an internet digital tax receipt (CFDI) or electronic invoice, to credit the value of the real estate purchase and sale transaction.


Under the obligation to issue a CFDI, it has become essential to identify who is the person obliged to issue it; and this will depend on who is the seller of the property and what tax regime applies, in other words, if it is an individual, with or without business activity, a legal entity or a foreign resident.


In order to clarify the CFDI issuance rule, below we separate the obligation that will depend on the seller:


If it is a Natural Person. – For example, a salaried employee, a housewife, or a person who does not perform economic activities, for this group who is obliged to issue the CFDI, is the notary who formalizes the transaction through a public deed.


If it is an individual with business activity. – Generally speaking, those people who engage in industrial or commercial activity by themselves without forming a company, when the seller is in this group, the person obliged to issue the CFDI for the sale of real estate is the same individual.


Legal Entities. – In the case that the seller is a legal entity (Company) this is the one obliged to issue the CFDI of the sale of the real estate.


Once we can identify who is obligated to issue the tax receipt (CFDI) for the purchase and sale of the real estate, it is essential to highlight that the CFDI and its complement must comply with certain specifications in order for the buyer to be able to credit the acquisition cost, among which we find, among others:

  1. Identify the property that is the purpose of the operation,

  2. The value of the transaction,

  3. The parties involved,

  4. The deed in which the act is formalized,

  5. In the case of transaction involving VAT (Value Added Tax) the amount paid for this tax

Data to be recorded by the notary in the CFDI complement.

Why is the CFDI or Invoice so important?


As mentioned before, the CFDI is the proof of the value of the transaction and this is used by the seller to prove the economic income and file a tax return with the tax authorities, and by the buyer to credit the amount of the transaction in future transactions and pay taxes based on the value established in the invoice.


Not having the CFDI implies that at the time of a future sale, taxes will be calculated based on the total amount of the transaction, directly impacting the taxes that will have to be paid for not having this tax receipt.


Requesting and having the CFDI in the purchase and sale of real estate is one of the many points that must be reviewed and taken care of at the time of closing an acquisition and/or sale of a real estate, contact a professional to clarify all your doubts in Teran Rojas y Asociados, we are at your service to help you.

 

Published on November 22nd, 2021.


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