Overview
- Only payments coded 02, 03, 04, 28 or 29 qualify for personal deductions, and the funds must come from the claimant’s own account rather than cash or a third party’s card.
- Using a borrowed card or account can nullify the expense and create a discrepancy because reimbursements may be treated as income for the cardholder.
- A compliant CFDI must correctly reflect recipient data, payment form and method, the appropriate use code, line descriptions and taxes, or the deduction can be rejected.
- Erroneous or unjustified invoices must be canceled within the fiscal year by December 31 or the issuer risks penalties of 5%–10% of the invoice amount under the CFF.
- Cancellation is processed through the SAT portal or a PAC using motive keys 01–04, and in many cases requires recipient approval within three business days before auto-acceptance.