Brazil Nota Fiscal Eletrônica e-invoicing update

Delay on mandatory NFS-e for small companies providing services until 1 September 2023

The mandatory adoption by small and unincorporated taxpayers of the Nota Fiscal de Serviós Eletrônica (NFS-e) for services has been delayed from 3 April to 1 September 2023. The e-invoice regime captures the amount paid, the service provider, and the service provider. A new national NFS-e standard service since last year, it is possible to issue an electronic invoice with information such as the customer’s CPF or CNPJ, the type of service provided and the amount of the operation.

April 2022 – NFS-e electronic invoice for services harmonised

E-invoicing pioneer, Brazil, has harmonised the services e-invoice,  NFS-e. Currently, the format is set locally by the states and municipalities. NFS-e covers the ISSQN – Imposto Sobre Serviços de Qualquer Natureza tax.

This will create a national service option for states and municipalities to use a centralised portal for participants to register invoices, including free mobil app. Larger organisations can connect to SEFIN (National Finance Secretariat) via an API. Taxing jurisdictions can use the new National System of NFS-e service or combine it with their own existing tax administration.

Small businesses must adopt government Simples Nacional e-invoicing from 1 January 2023

Micro businesses using the consolidated tax Simples Nacional regime must use centralised portal (CGSN Resolution No. 169 of July 27, 2022). Simples Nacional enables a single reporting for a host of Brazilian taxes, including ISS; PIS; Cofins IPI and ICMS.

Brazil NF-e pioneer since 2005

Brazil’s e-invoicing regime, Nota Fiscal Eletrônica NF-e, is operated by SEFAZ, the tax authority for goods. It introduced the NF-e in 2005. There are two other main e-invoice types in Brazil: NFC-e for B2C; and NFS-e for services

You can keep up-to-date with VAT Calc’s global live VAT invoice transaction and e-invoice blog on country real-time reporting reforms.

There are three types of electronic fiscal documents now mandated for all businesses to record transactions between businesses:

• Goods: state-level Nota Fiscal Eletrônica NF-e
• Services: regional Nota Fiscal de Serviós Eletrônica (NFS-e)
• Transport services: Conheçimento de Trasporte Eletrônico (CT-e)
• Freigh: MDF-e, SPED and REINF
• Electricity supplies: NF3e

How to create Brazilian NF-e

For goods, with the federal-level NF-2:

The supplier must apply for a digital signature from their regional certified issuer. They are given an invoice generation key.

• The supplier first must generate an invoice in XML format with its unique digital signature
• This is then submit to the regional Secretaria da Fazenda Estadual – SEFAZ for validation and authorisation as a Nota Fiscal Electronica. It is given a unique authorisation code for inclusion in the XML file and ERP of the seller. The goods may now be dispatched.
• For movements of goods, a DANFE document is needed with the NF-e
• The customer is then issued with the invoice which they must approve to validate the complete invoice creation process.

The issuance of invoices for services is much more complicated as they are controlled by over 5,000 local taxing jurisdictions.

Central and South America e-invoicing