Brazilian VAT number contains 8 digits, a 4-digit radical, and 2 check digits (e.g., 0.123.4567/8901-23)
The standard VAT rate in Brazil is from 17-19%, depending on the state, with reduced rates from 4-12% for interstate movement of goods.
All businesses with Brazilian VAT number (domestic established companies) must submit periodic payments.
For all companies that operate in Brazil, VAT returns must be submitted monthly.
In the case of the late filing of VAT returns and payments, the Brazilian government prescribed the penalty from 1% to 150% of the tax due. The regular penalty is 75% of the tax due.
The main fields that must be filled in the NFe are:
As the strongest economy in LATAM, Brazil was one of the forerunners in adopting electronic invoicing. As of 2005, invoices and some other e-tax documents must be authorized by the Brazilian Tax Authorities before the issuance. Even though considered the most complex invoicing process in the world, Brazil developed a powerful system for reducing the grey economy and, in that way, became a global leader in the use of e-invoices and other electronic tax documents.
Governmental body responsible for e-invoicing in Brazil:
Currently, there are three electronic documents mandatory in Brazil:
The most common electronic document in B2C transactions is NFe (Nota Fiscal Eletrônica).
What does the NFe reporting process in Brazil look like?
Date updated [May 12, 2021]
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