{"id":7878,"date":"2018-02-19T18:42:30","date_gmt":"2018-02-19T23:42:30","guid":{"rendered":"http:\/\/quadranslawandfinance.com\/?p=7878"},"modified":"2018-08-07T18:23:46","modified_gmt":"2018-08-07T23:23:46","slug":"glossary-for-accounting-procedures","status":"publish","type":"post","link":"https:\/\/quadranslawandfinance.com\/en\/blog\/glossary-for-accounting-procedures\/","title":{"rendered":"Basic glossary to understand accounting procedures"},"content":{"rendered":"<h1 style=\"text-align: center;\"><span style=\"color: #000000;\"><strong>Basic glossary to understand accounting procedures<\/strong><\/span><\/h1>\n<p><span style=\"color: #000000;\">In many occasions we run into abbreviations that appear on tickets or receipts when paying something, or when creating electronic invoices but you do not know the meaning they have, these are just some of the situations but although there are many acronyms that must be learned to have a better knowledge.<\/span><\/p>\n<h2><span style=\"color: #000000;\">Some of the most basic to be understood are the following:<\/span><\/h2>\n<ol>\n<li>\n<h3><span style=\"color: #000000;\"><strong>CFDI<\/strong>, Digital Tax Receipt via Internet.<\/span><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000000;\">It is an electronic bill model in Mexico in XML format that is characterized by:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Integrity, the information can not be manipulated or medicated without being detected.<\/span><\/li>\n<li><span style=\"color: #000000;\">Authenticity, the transmitter has a digital seal certificate.<\/span><\/li>\n<li><span style=\"color: #000000;\">Unique, it has a unique identifier granted by a PAC (Proveedor Autorizado de Certificaci\u00f3n) unique for the recipient and the tax administration.<\/span><\/li>\n<li><span style=\"color: #000000;\">Verifiable, once a CFDI is issued it cannot be denied that it was created.<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #000000;\">2. <strong>CFF<\/strong>, Federation fiscal Code.<\/span><\/h3>\n<p><span style=\"color: #000000;\">It is the legal system that contains the fundamental tax concepts, also sets:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">The procedures to obtain tax revenue.<\/span><\/li>\n<li><span style=\"color: #000000;\">The manner of execution of tax rulings.<\/span><\/li>\n<li><span style=\"color: #000000;\">The administrative resources.<\/span><\/li>\n<li><span style=\"color: #000000;\">The system to resolve disputes before the Federal Court of Fiscal and Administrative Justice.<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #000000;\">3. <strong>DOF<\/strong>, Official Journal of the Federation.<\/span><\/h3>\n<p><span style=\"color: #000000;\">It is the organ of the Constitutional Government of the United Mexican States, which has the function of publishing in the national territory:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Laws.<\/span><\/li>\n<li><span style=\"color: #000000;\">Rules.<\/span><\/li>\n<li><span style=\"color: #000000;\">Agreements.<\/span><\/li>\n<li><span style=\"color: #000000;\">Mailshots.<\/span><\/li>\n<li><span style=\"color: #000000;\">Orders.<\/span><\/li>\n<li><span style=\"color: #000000;\">Acts issued by the powers of the Federation.<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #000000;\">4. <strong>IEPS<\/strong>, Special tax on production and services.<\/span><\/h3>\n<p><span style=\"color: #000000;\">In the case of the sale of gasoline are the manufacturers, producers and importers of this who must pay the tax to the SAT for being those who sell gasoline directly to the stores (gas stations), however the final consumers pay an amount equivalent to the tax on which is part of the final price of the product. In the case of food, it is not applicable to those who only offer food service.<\/span><\/p>\n<h3><span style=\"color: #000000;\">5. <strong>IT<\/strong>, the income tax.<\/span><\/h3>\n<p><span style=\"color: #000000;\">This tax is applied directly to sources of wealth, both for natural persons and for legal persons and not only for those who reside in Mexico, since Article 1 of the Income Tax Law stipulates that:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Mexican residents must pay ISR regardless of &#8220;the location of the source of wealth from where they come from&#8221;.<\/span><\/li>\n<li><span style=\"color: #000000;\">Residents abroad must pay the ISR if they receive income from a permanent establishment in Mexico.<\/span><\/li>\n<li><span style=\"color: #000000;\">Residents abroad who receive income from sources of wealth in Mexico must pay the ISR even if they do not have permanent establishments.<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #000000;\">6. <strong>VAT<\/strong>, the value added tax.<\/span><\/h3>\n<p><span style=\"color: #000000;\">VAT is an indirect tax that is applicable if you sell goods, provide independent services, grant the use or temporary enjoyment of goods or carry out imports of goods or services, the general rate that must be paid is 16%.<\/span><\/p>\n<h3><span style=\"color: #000000;\">7. <strong>RFC<\/strong>, Federal taxpayer registration.<\/span><\/h3>\n<p><span style=\"color: #000000;\">It is an alphanumeric key that consists of 13 characters, assigned by the SAT and serves to control the payment of taxes, this key must have both natural persons and moral persons who perform any economic activity. Tax regimes are:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Wages and salaries.<\/span><\/li>\n<li><span style=\"color: #000000;\">Provision of services.<\/span><\/li>\n<li><span style=\"color: #000000;\">Tax Incorporation Regime.<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #000000;\">8. <strong>RIF<\/strong>, Tax Incorporation Regime.<\/span><\/h3>\n<p><span style=\"color: #000000;\">Individuals with little economic and administrative capacity, that is, people who only carry out business activities, sell goods or provide services for which professional title is not required, and their combined income does not exceed 2 million pesos.<\/span><\/p>\n<h3><span style=\"color: #000000;\">9. <strong>RMF<\/strong>, Miscellaneous Tax Resolution.<\/span><\/h3>\n<p><span style=\"color: #000000;\">It is a document that is published on an annual basis with the objective that taxpayers can easily understand the rules and articles of the law, so that they can fulfill them efficiently.<\/span><\/p>\n<h3><span style=\"color: #000000;\">10. <strong>SAT<\/strong>, Service tax administration.<\/span><\/h3>\n<p><span style=\"color: #000000;\">It is a decentralized body of the Ministry of Finance and Public Credit, which is responsible for applying tax and customs legislation, so that:<\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Individuals and corporations contribute proportionally and equitably to public spending.<\/span><\/li>\n<li><span style=\"color: #000000;\">Supervise taxpayers to comply with tax and customs regulations.<\/span><\/li>\n<li><span style=\"color: #000000;\">Facilitate and encourage voluntary compliance.<\/span><\/li>\n<li><span style=\"color: #000000;\">Generate and provide the necessary information for the design and evaluation of tax policy.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"color: #000000;\"><em>Legal and Accounting Consulting in Playa del Carmen<\/em><\/span><\/p>\n<p><span style=\"color: #000000;\">Source of information<\/span><\/p>\n<h6><span style=\"color: #000000;\"><sup>1<\/sup>https:\/\/www.edicomgroup.com\/es_MX\/solutions\/einvoicing\/what_is.html\u00a0\u00a0<\/span><\/h6>\n<h6><span style=\"color: #000000;\"><sup>2<\/sup><a style=\"color: #000000;\" href=\"http:\/\/mexico.leyderecho.org\/codigo-fiscal-de-la-federacion\/\">http:\/\/mexico.leyderecho.org\/codigo-fiscal-de-la-federacion\/<\/a><\/span><\/h6>\n<h6><span style=\"color: #000000;\"><sup>3<\/sup><a style=\"color: #000000;\" href=\"http:\/\/dof.gob.mx\/historia.php\">http:\/\/dof.gob.mx\/historia.php<\/a><\/span><\/h6>\n<h6><span style=\"color: #000000;\"><sup>4<\/sup>http:\/\/www.sat.gob.mx\/informacion_fiscal\/preguntas_frecuentes\/Paginas\/ieps.aspx<\/span><\/h6>\n<h6><span style=\"color: #000000;\"><sup>5<\/sup><a style=\"color: #000000;\" href=\"https:\/\/www.elcontribuyente.mx\/2017\/05\/que-es-el-impuesto-sobre-la-renta-isr\/\">https:\/\/www.elcontribuyente.mx\/2017\/05\/que-es-el-impuesto-sobre-la-renta-isr\/<\/a><\/span><\/h6>\n<h6><span style=\"color: #000000;\"><sup>6<\/sup>http:\/\/www.sat.gob.mx\/informacion_fiscal\/obligaciones_fiscales\/personas_morales\/no_lucrativas\/Paginas\/concepto_iva.aspx<\/span><\/h6>\n<h6><span style=\"color: #000000;\"><sup>7<\/sup><a style=\"color: #000000;\" href=\"https:\/\/www.facturadirecta.com\/glosario\/RFC-Registro-Federal-de-Contribuyentes\/\">https:\/\/www.facturadirecta.com\/glosario\/RFC-Registro-Federal-de-Contribuyentes\/<\/a> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/h6>\n<h6><span style=\"color: #000000;\"><sup>8<\/sup><a style=\"color: #000000;\" href=\"http:\/\/losimpuestos.com.mx\/regimen-de-incorporacion-fiscal\/\">http:\/\/losimpuestos.com.mx\/regimen-de-incorporacion-fiscal\/<\/a><\/span><\/h6>\n<h6><span style=\"color: #000000;\"><sup>9<\/sup><a style=\"color: #000000;\" href=\"http:\/\/dof.gob.mx\/nota_detalle.php?codigo=5508788&amp;fecha=22\/12\/2017\">http:\/\/dof.gob.mx\/nota_detalle.php?codigo=5508788&amp;fecha=22\/12\/2017<\/a> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/h6>\n<h6><span style=\"color: #000000;\"><sup>10<\/sup>http:\/\/www.sat.gob.mx\/que_sat\/Paginas\/default.aspx <\/span><\/h6>\n","protected":false},"excerpt":{"rendered":"<p>Basic glossary to understand accounting procedures In many occasions we run into abbreviations that appear on tickets or receipts when paying something, or when creating electronic invoices but you do not know the meaning they have, these are just some of the situations but although there are many acronyms that must be learned to have [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":7874,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-7878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accountant"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Basic glossary to understand accounting procedures<\/title>\n<meta name=\"description\" content=\"In many occasions we run into abbreviations that appear on tickets or receipts when paying something\" \/>\n<meta name=\"robots\" content=\"index, follow, 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