Performing any type of business or financial transaction in Mexico will involve a Factura, a legal receipt issued for goods and services, and may be used as proof of payment and for tax deductions. A credit card receipt or simple cash register receipt will not be sufficient for tax deductions or to file an insurance claim for your loss. You must have an official factura.
Obtaining a factura in Mexico can sometimes be a hassle if you don’t ask for one on the day of purchase the product or service, but if you do it the same day it should be a smooth process. The provider of products or services is obligated to issue the factura for you. This legal receipt will include the seller or service provider’s cedula or tax seal with their RFC, (Federal taxpayers’ registration, for its acronym in Spanish), the business address and phone number.
The factura will contain the items or service purchased, and a separate sales tax called IVA, Value Added Tax, which is 16% of the sale in Mexico.
Insurance companies will need the factures to validate and reimburse your expenses. To obtain a factura, the company will request your RFC too, which is a tax identification number for businesses and people in Mexico from SAT, Sistema de Administración Tributaria, a branch of Mexico’s Ministry of Finance.
As a nonresident of Mexico,you may not have your own RFC code, but may still ask for a facture by asking the provider of the same to use a general RFC code. All companies and/or providers of services/products must know these codes, and are obligated to issue a factura with such code if the client doesn’t have one. However, that is not always the case, and the person you speak to may not know it. So, there are different variations, but here is the best RFC for foreigners to use, as given by SAT: XAXX010101000
It is very important to state that the process of gathering a factura will only apply if you are submitting a reimbursement in Mexico. If you have a claim outside of Mexico, or if your claim is through direct payment in or out of this country, you will not need to ask for one.
Proper management of your bills and receipts will help make sure the insurance claim is processed quickly and efficiently, and will allow your insurance broker to do the proper follow up on your claim.