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
|Country||Date||Comments (click for details)|
|Argentina||2003||e-Factura Electronic Authorization Code system|
|Bolivia||Dec 2021||SFE Pre-clearance model|
|Brazil||2005||Nota Fiscal Electronic NF-e|
|Chile||2001||DTE tax invoice|
|Colombia||Nov 2020||e-invoice CUFE|
|Dominican Republic||2023||Mandatory e-invoicing phased introduction|
|Ecuador||2014||SFEP VAT e-invoicing|
|El Salvador||2022||2019 pilot of govt pre-clearance model; 2021 completion target|
|Mexico||2011||Pre-clearance e-invoice CFDI|
|Panama||2021||SFEP VAT e-invoicing with third-party agent required|
|Paraguay||2022||Marangatú, a pre-clearance e-invoice system started 1 Jan 2022|
|Peru||2010||Pre-clearance invoice; requirement for approved e-invoice agent|
|Uruguay||2019||CFE pre-clearnance e-invoicing|