Lectures > EFOS and EDOS in Mexico: Prevention and Legal Defense Before the SAT

In recent years, the Servicio de Administración Tributaria (SAT) has intensified enforcement related to so-called EFOS and EDOS.

For many taxpayers, these concepts seem distant or technical… until they become a real problem.

For that reason, it is essential to understand what they mean, the risks involved, and how to prevent or respond to this type of situation.

What are EFOS and EDOS?

In simple terms:

• EFOS are taxpayers that issue tax invoices (CFDI) without having the actual capacity to provide the services or deliver the goods being invoiced. In other words, they simulate transactions.
• EDOS are taxpayers that use those invoices to deduct expenses or claim tax credits, giving tax effect to transactions the authority considers nonexistent.

Legal basis: Article 69-B of the CFF

Article 69-B of the Código Fiscal de la Federación establishes the procedure through which the authority may presume the nonexistence of transactions.

The process generally follows these stages:

1. The SAT detects irregularities.
2. The taxpayer is published on a preliminary list.
3. A period is granted to submit evidence and rebut the presumption.
4. If the taxpayer fails to prove the substance of the transactions, it is included on a final list as an EFOS.

Subsequently, the authority identifies taxpayers who used those invoices: the EDOS.

Relevant consequences

Being involved in these schemes may lead to significant consequences:

• Non-deductibility of transactions
• Assessment of tax liabilities
• Fines
• Restriction or cancellation of digital stamp certificates
• Potential criminal liability in serious cases

In practice, some of these measures may even paralyze a company’s operations.

Prevention is key

It is essential to implement strong vendor review and control procedures.

This includes:

• Verifying tax status
• Confirming real operational capacity
• Validating delivery of goods or provision of services
• Retaining contracts, deliverables, and supporting evidence
• Preserving communications related to the transaction

Proper document management can make all the difference during a tax review.

If a procedure has already begun

Immediate action is critical.

The rebuttal stage requires solid evidence proving that the transactions were real.

If an unfavorable resolution is issued, available legal remedies may include:

• Administrative revocation appeal
• Administrative litigation
• Amparo proceedings

Through these remedies, both the substance and legality of the procedure may be challenged.

How We Can Support

At Guerrero Santana, we have the experience and strategic approach to assist our clients with:

• Risk identification
• Implementation of preventive controls
• Documentary support strategies
• Legal defense against actions by the tax authority

We remain at your disposal to help protect the tax stability of your operations.