NF-e - Mandatory electronic invoicing system in Brazil
As foreseen in the ICMS Agreement No. 12 of March 31, 2023, the introduction of the single-phase ICMS for Gasoil and LPG was postponed to May 1, 2023.
Since 2008, Brazil has implemented an authorization-based electronic invoicing model that requires the country's tax authorities to validate an invoice before a supplier can issue it to a payer. This system was designed to improve efficiency and transparency in commercial transactions, as well as reduce tax fraud.
In Brazil, the Electronic Invoice system, known as "NF-e" (Nota Fiscal Eletrônica), has revolutionized the way companies issue and manage their invoices. Through this system, invoices are generated, transmitted and filed electronically, eliminating the need for physical documents and streamlining the flow of information.
The electronic invoicing process is carried out through the authorization of the Nota Fiscal Eletrônica (NF-e), the Nota Fiscal de Serviços Eletrônica (NFS-e), and the Conhecimento de Trasporte Eletrônico (CT-e).
- NF-e is used for product transactions.
- NFS-e is used for service provisions.
- CT-e is used for logistics and goods transportation services.
It is important to note that the issuer must first send the electronic invoice to the tax authorities for validation. Once authorized, the commercial transaction can proceed. This process ensures the integrity and authenticity of the invoices, avoids errors and rejections, and helps taxpayers meet their tax obligations in a timely manner.
The Electronic Invoice 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.
News - Technical Note (NT2023.001)
The State Treasury Department (SEFAZ) has published Technical Note (NT2023.001), which presents significant changes regarding the Electronic Invoice (NF-e) in Brazil. Among the most significant changes are the inclusion of new tax codes, the elimination of certain fields, and the updating of certain validation rules.
- New fields and changes to existing rules covering the new form of monophonic taxation on fuels.
- Update of the product list.
- New validation rules for monophonic taxation on fuels.
- Changes in the NF-e DANFE to include the new fields for monophonic ICMS on fuels, and the inclusion of new fields for indicating the calculation base of monophonic ICMS and its totals.
For schema changes and changes in validation rules:
- Approval: 03/03/2023 – Production Deadline: 30/03/2023
For version 1.11 of this Technical Note, the deadline for implementing the new Validation Rules is:
- Homologation: 03/07/2023 – Production Deadline: 05/01/2023
Procedure for generating and validating an Electronic Invoice:
- The XML file is signed with a digital certificate.
- The electronic invoice is transmitted to SEFAZ via web service.
- SEFAZ performs a pre-validation check and returns an authorization for use to allow the movement of goods.
- To legally cover the transit of the cargo, the company prints the DANFE (Auxiliary Document of the Electronic Invoice) on regular paper.
- The DANFE is a document of utmost importance that, although generated electronically and validated by SEFAZ through the same channel, must accompany the goods in paper format during their movement within the nation.
The electronic model brings great benefits to companies.
Since October 2005, when SEFAZ made the use of the Electronic Invoice (NF-e) valid in all states of the Federation, Brazilian companies have gained significant advantages, especially in terms of administrative agility and cost and time savings. This has turned what was initially a pilot project into the most productive technological advancement in the commercial communication technology sector in Brazil.
- Streamlined administrative management by directly integrating the Electronic Invoice with the client's ERP system without the need for manual data entry.
- Maximum security guarantees by being able to integrate electronic systems capable of verifying the authenticity of digital signatures.
- Electronic archiving of original files, improving administrative efficiency and document security conditions.
- Reduction of accounting errors due to the elimination of human typographical errors in invoices.
Advantages of the ongoing updates of EDICOM's Global e-Invoicing solution.
Changes in the electronic billing system are common to align it with the objectives of the Tax Authority of the country. Non-compliance with new technical or legal requirements can result in penalties for companies. Therefore, it is important to stay informed and implement the corresponding updates.
The upcoming changes to Brazil's billing system can be implemented without disrupting company operations thanks to solutions like EDICOM's Global e-Invoicing platform, which adapts to the technical and legal specifications of each country where the client operates.
EDICOM's e-Invoicing projects are subject to continuous monitoring of the regulatory and legislative status in the countries where it operates. Any changes or modifications to technical and legal requirements are immediately and transparently implemented for the client without affecting their daily business activities.
EDICOM Brazil NF-e Service
EDICOM is a provider of technology solutions and electronic invoicing services worldwide, including Brazil, where the implementation of the Electronic Invoice (NF-e) has been a reality for several years.
Since its inception, EDICOM has been an expert in implementing electronic invoicing solutions, and its experience in the Brazilian market has allowed the company to offer high-quality solutions in this field. EDICOM is fully prepared to advise companies on the best way to implement the NF-e and focuses on helping organizations adapt to regulations and fulfill tax obligations in Brazil.
EDICOM's platform for NF-e is fully integrable with existing business management systems, which means users can issue electronic invoices with ease and accuracy. In addition, EDICOM also offers B2B and B2G electronic invoicing services, as well as solutions for sending supplier invoices and receiving customer invoices, enabling companies to manage the entire billing cycle efficiently and automatically.
EDICOM's experience and knowledge in implementing electronic invoicing solutions in Brazil, as well as its commitment to innovation and excellence in customer service, make EDICOM a leader in this market. The company continues to develop advanced solutions and services to meet the needs of businesses and ensure their tax compliance.