Companies See Opportunities in the Digital Transformation of the SAT in Mexico

The modernization of procedures to comply with the Tax Administration Service ( SAT ) and other government agencies, along with the strengthening of audit actions, encourages the arrival and expansion of businesses in Mexico that offer solutions like electronic signatures, digital payments, and guidance on tax matters, among others. “The digital transformation of business processes is gaining momentum, driven by government initiatives and the increasing need for greater operational efficiency and speed. Recent studies indicate that the global market for digital signatures will grow rapidly in the coming years, a trend that Mexico is swiftly embracing,” commented Marcelo Kramer, CEO of Clicksign, a Brazilian company that entered Mexico last December offering electronic signature solutions.

This company perceives a favorable landscape in Mexico for the adoption of digital signature solutions. “In the short term, our goal has been to establish a strong presence in the country, and the initial results have exceeded our expectations. We launched our solution with the aim of generating 1,000 new accounts, achieving that in just two weeks of operation... Our entry into the country reinforces the push towards digitization that the SAT and the Mexican government are leading, including streamlining the process for registering in the Federal Taxpayers Registry (RFC) and the use of tools like the e.firma,” added Clicksign's CEO. Currently, digital signatures allow for the validation of documents in digital format, replacing handwritten signatures on paper and transforming traditional processes with greater agility, security, and efficiency. They are used in various activities, from formalizing commercial contracts and confidentiality agreements to internal approvals and financial transactions. Signatures made through Clicksign carry legal weight, thanks to advanced technologies like multi-authentication, detailed activity logs, and encryption through codes and digital certificates. Signed documents are tamper-proof and can be verified in real time through a validator to ensure transparency and trust, all in compliance with Mexican standards.

In addition to the digitization of processes, the firm objective of the SAT to continue with audits to verify compliance with tax obligations stimulates the expansion of global consulting services in Mexico, such as Alvarez & Marsal (A&M), which has broadened its services in the country through its subsidiary Alvarez & Marsal Tax. “The opportunity that arises for Mexico, not only as an internal market but also as a provider of services and goods globally, lies in the fact that, on one hand, there will be more audits (by the SAT) for established companies, and, at the same time, more industry will be generated, which requires greater compliance and strategic advice on how to operate in Mexico and manage relationships with related parties. This represents a significant challenge for existing businesses in terms of improving their operations, supply chains, and therefore their tax impact to remain competitive. This whole matter revolves around competitiveness. That is the reason that led us to expand our tax services in the country,” stated José Manuel Ramírez, partner and leader of Alvarez & Marsal Tax Mexico, in an interview. He added that auditing will become increasingly intense across different industries and sizes of taxpayers. The services offered by this subsidiary in Mexico include corporate tax advisory, transfer pricing, international tax planning, services for private clients, national and international tax disputes, and administrative litigation.

The Rise of Digital Commerce The story doesn’t end here; the growth of e-commerce is also driving the use of tools for digital payments. “We are in an interesting combination between online sales and the digitization of procedures, which benefits public administration since online sales must be registered and taxed. There are countless companies that can start to expand their market and differentiate themselves; they just need to take the plunge and take advantage of these online commerce trends,” explained Óscar Rosado, country manager of TipTop Pay. This company helps both large and small businesses accept online payments; from card payments to cash payments at convenience stores or quick electronic transfers. “To use these tools, it’s crucial to have your business formalized since everything must go to a bank account that needs to be reported. We provide our merchants with detailed information on their online payments, breaking it down and generating personalized reports they can check in real time. This way, when it’s time for them to make declarations to the SAT or invoice a particular client, they will instantly have all their sales information,” detailed the country manager of TipTop Pay.

Digitalization in Mexico promises not only greater efficiency in tax processes but also fosters a favorable environment for entrepreneurs and businesses looking to expand their operations. With advancements in technology in government procedures, opportunities for growth in e-commerce and the adoption of digital payments become key tools for competitiveness in an ever-changing global market. Taking advantage of these shifts is essential for the development and sustainability of businesses in the country.