BrazilE-Invoicing & ReportingBrazil E-invoicing & Digital Reporting Guide
Brazil Electronic Invoicing and Digital Reporting Requirements
Questions About E-Invoicing in Brazil?
Contact our expertsBackground
The first legislation on e-invoicing dates back to 2005, and the e-invoicing obligation is live as of 2008. e-Invoicing was introduced in Brazil as part of a broader project focused on a national public system for e-tax accounting and e-bookkeeping (SPED).
SPED is one of the most advanced and comprehensive e-compliance systems in the world, covering e-invoicing, e-bookkeeping for tax accounting, and other e-bookkeeping related to accounting, finance, and labor law records.
What Types of Businesses Does This Apply to?
E-invoicing in Brazil is mandatory for all taxable persons supplying goods or services.
Governmental Body Responsible for E-invoicing in Brazil
- Ministry of Finance (Ministério da Fazenda)
- Federal Revenue Service of Brazil (Receita Federal do Brasil - RFB)
- Brazilian Tax Authorities on a state level (Secretaria da Fazenda - SEFAZ)
- Municipalities (Secretária de Finanças Municipal)
Penalties for Not Adhering to Brazil's E-invoice Mandates
- A penalty of up to 100% of the invoice value or transaction price may be assessed for failure to issue an e-invoice or for an invoice that does not adhere to the legal and technical requirements.
- A criminal offense may also be committed if the requirements for invoicing are not met (e.g., tax evasion).
What does the e-invoicing process in Brazil look like?
NFS-e
The NFS-e is generated through the municipal tax authorities webservices, provided by the respective municipal finance department, as follows:
- ISS Law allows taxpayers to issue a provisional receipt to be later replaced by a NFS-e. A Provisional Receipt for Services (Recibo provisório de serviços - RPS) can be prepared manually or via webservices
- In case RPSs are issued, these are sent in batches to the secretariat of the municipalities for processing and generating the respective NFS-e’s and receives a receipt protocol number as proof of sending the RPS batch.
- The batch received by the secretariat will be placed in a processing queue and will be executed in a timely manner. Once processed, the system returns the corresponding NFS-e or the list of errors found in the batch. Once generated, the NFS-e can no longer be changed (this also describes the process for situations in which RPSs are not issued)
Since every municipality may have its own software in Brazil that is frequently tailored for the municipality (Brazil has over 5,500 municipalities), there are many different electronic service invoice standards used across the nation. Municipalities have the option of implementing Brazil's standardized electronic service, the National NFS-e System (Sistema Nacional da NFS-e - SN NFS-e), as of 2023.
NF-e
- The taxpayer generates an electronic file corresponding to the NF-e format, which contains the fiscal information of the transaction. It must be digitally signed to ensure the integrity of data and the authority of the issuer.
- The taxpayer electronically transmits the NF-e to the competent state-level Secretary of Finance (Secretaria da Fazenda - SEFAZ) of the taxpayer's jurisdiction, which will pre-validate the file and return a protocol of receipt (Autorização de Uso). The goods cannot be transported without a proper e-invoice issued and accompanying the movement of goods.
- The NF-e is transmitted to the Federal Revenue Service (Receita Federal do Brasil, or RFB) as well. The RFB operates Ambiente Nacional, a national repository for all electronic invoices issued in Brazil.
- In addition, the NF-e is sent to a different competent Secretary of Finance in the case of an interstate transaction, which is determined based on the final destination of the goods being transported.
- A shipment note called DANFE (Documento Auxiliar da Nota Fiscal Eletrônica) is printed in a single copy to accompany the transport of goods. The DANFE contains the NF-e access key that allows the holder of this document to confirm the effective existence of the NF-e through the RFB or the SEFAZ website.
NFC-e
The NFC-e is incorporated into the same layout as the NF-e; therefore, the process of issuing NFC-e is very similar.
Is SAF-T Needed in Brazil?
No.
Questions About E-Invoicing in Brazil?
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