Have you heard about the generic RFC? In Mexico, having an RFC is essential for professionals and companies, since it is the key that identifies us as taxpayers before the Tax Administration Service (SAT).
However, not all RFCs are the same. However, today we will talk about another type of key that is as relevant as the previous one: the generic RFC.
In this article I will try to answer all your questions about the generic RFC, what it is, what it is for and how it is used when invoicing a purchase. Continue reading!
What is a generic RFC?
The generic RFC is the key generated by the Tax Administration Service used for global billing exercises or sales to the public where there is no single Federal Taxpayer Registry.
Also called generic RFC for the general public, this code finds its bases in the , which indicates the use of these generic keys for the invoicing of operations towards the non-tax public.
Let’s take an example: imagine that you make a purchase in a shopping center. When paying, the person at the checkout asks you: “Do you want to invoice?”. If you answer no, the business must report your purchase with a generic RFC, since regardless of which RFC is invoiced, the process must be maintained to report the movements and payment of taxes (such as VAT) corresponding to your purchase. This is where the generic RFC comes into play.
What is a generic RFC for?
The generic RFC is like the joker in a card game, as it is a very useful tool that is used in different cases.
The generic RFC is used to:
- Report to the SAT all purchases made by customers who do not want to leave their data or do not need an invoice.
- To invoice all those transactions carried out by foreign companies that do not have an RFC as such.
- To report the purchases or sales of foreigners who live in Mexico but who are not registered with the SAT, that is, who do not have a personalized RFC.
When should a generic RFC be used?
A generic RFC should be used in the following cases:
- To bill a sale to the general public where the user does not want to leave their tax data.
- To invoice transactions with foreign companies that are not registered with the Treasury.
- To invoice a sale to a foreign client who does not have a personalized RFC, because they are visiting Mexico or have no need to invoice.
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How many digits should a generic RFC have?
The generic SAT RFC is composed of 13 elements, similar to the composition of a personal RFC, however, unlike the latter, the digits do not have a correlation with the user and their personal data, but rather it is a series of basic digits composed by ones, zeros, Xs and some letters.
How to get a generic RFC?
As its name suggests, as it is a generic RFC, there is no need to remove it or generate it on any platform, since these are already predefined by the Tax Administration Service. Below we share the generic RFCs for foreigners, for national individuals and/or legal entities.
What is the generic RFC for the SAT?
The generic SAT RFC is XAXX010101000 and can be used to issue invoices to nationals who are not registered with the Treasury.
What is the generic RFC for natural person?
The generic RFC for individuals is XAXX010101000 and is the same as the generic national RFC, generic RFC for legal entities or the generic RFC for the general public. In reality, they are only different ways of knowing and naming this tax code.
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What is the generic RFC for foreigners?
The foreign generic RFC is XEXX010101000 and is useful for issuing invoices or tax receipts for foreign individuals, both individuals and legal entities.
How to invoice a generic RFC?
Invoicing a generic RFC is a really simple process, since when generating an invoice with this key, the only mandatory field is the RFC. So you must follow the following steps:
- Enter your electronic billing portal.
- Select the option “Create a new invoice” or the corresponding option.
- In the RFC field, add the corresponding client, whether it is the national or foreign generic RFC.
- Continue making your invoice in the usual way.
☝ Tip: when invoicing with a generic RFC, you do not need to enter personal data such as name or address, so do not worry about having all the data complete.
If this is your first time billing with a generic RFC, it is important that you review this data with your trusted accountant to ensure that the billing process was carried out correctly and that everything is in order.
In conclusion
The generic RFC is a very useful tool for invoicing people who are not registered with the Treasury or who do not require an invoice. It is an easy way to report and keep track of income before the SAT, however it is also an element that should be used at discretion.
If you are going to start using the generic RFC, it is important that you seek the advice of a good accountant to help you define the best way in which you can take advantage of this tool, as well as to select those cases in which its use does not apply. Having an optimal tax situation is extremely important, both for individuals and corporations.
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