Government compliance - Brazil
E-Invoicing
E-invoicing in Brazil is covered by Fiscalisation Receipts. Brazil employs an authorization-based e-invoicing model, requiring clearance from the country’s tax authorities before issuing an electronic invoice to a client.
Fiscalisation Receipts
Similar to e-invoicing, an authorization-based model is in practice, necessitating approval from the Brazilian tax authorities most commonly referred to as Receita Federal (RFB) before issuing an electronic invoice to a client.
The tax payment and the accessory obligation compliance by companies in Brazil are managed by government bodies at three different levels:
- Federal The Brazilian Federal Revenue Service (RFB)
- State State Finance Department
- Municipal Municipal Finance Department
Format
The Electronic Invoice ( NF) is an electronically issued and archived XML document that aims to document the circulation of goods or the provision of services between the offering and demanding parties in different states of Brazil.
This document will be sent via Web Services to the SEFAZ (Tax Authority), which, upon validation, will issue the corresponding authorization to the issuing company. At this point, with the authorized NF-e, the issuing company can generate the DANFE (Auxiliary Document of NF-e), which is a dispatch advice related to the authorized electronic invoice and must accompany the goods during transportation.
The authorized NF-e must be sent to the customer, acting as the official invoice that details the commercial transaction between the buyer and seller.
The fiscal and legal validity of the Electronic Invoice is guaranteed through the digital signatures of the issuer and recipient, as well as the validation of the document by the Brazilian tax authorities (Secretaria de Fazenda – SEFAZ), as a prerequisite for the commercial transaction.
The system used is determined by the product category. The types of electronic invoicing are as follows:
- For goods – Nota Fiscal Eletrônica (NF-e)
- For services – Nota Fiscal de Serviços Eletrônica (NFS-e)
- Mostly, NFS-e is the singular invoice requirement for entities lacking product selling outlets like restaurants
Disclaimer: Please note that this is for information purposes only. It does not constitute a legally binding document so you should also consult your local requirements.
