How does electronic invoicing work in Brazil? (NF-e, NFS-e, NFCom, and CT-e)

Electronic invoicing in Brazil is a well-established system that has optimized tax management and business transactions. Its use is mandatory and covers different documents depending on the type of operation:

• Nota Fiscal Eletrônica (NF-e): For the sale of goods
• Nota Fiscal de Serviços Eletrônica (NFS-e): For service transactions
• Nota Fiscal de Serviços de Comunicação Eletrônica (NFCom): For the telecommunications sector
• Conhecimento de Transporte Eletrônico (CT-e): For the transportation of goods

Each of these documents plays a specific role within Brazil's tax system, ensuring greater efficiency and transparency in commercial processes.

Characteristics of Brazil’s electronic invoicing system

Brazil's e-invoicing system is complex and fragmented, as requirements vary depending on the nature of the operation and the jurisdiction where the document is issued. To ensure compliance, businesses must understand the specifics of each invoice type (NF-e, NFS-e, NFCom, and CT-e).

Despite the diversity of electronic documents, all e-invoice types share some common elements:

• Electronic signature: E-invoices must be electronically signed to ensure authenticity and integrity.
• XML format: Documents are generated in structured XML format following the technical and tax requirements for each type of operation.
• Prior validation: Tax authorities must validate each document before it can be used in a commercial transaction.
• Electronic archiving: Invoices must be securely stored for at least five years.

Types of electronic invoices in Brazil

Brazil has several types of e-invoices (NF-e, NFS-e, NFCom, and CT-e), each designed for different transactions and tax obligations.

Nota Fiscal Eletrônica (NF-e)

The Nota Fiscal Eletrônica (NF-e) is a digital document that replaces physical invoices in the sale of goods or products. Its purpose is to record commercial transactions between businesses and facilitate tax control at the national level. Below is the NF-e issuance and validation process for goods sales transactions according to established requirements:

• Generation: The issuing company extracts transaction data from its ERP system to generate an XML file.
• Electronic signature: The document is signed electronically with a digital certificate.
• Submission to SEFAZ: The XML file is transmitted to the Secretaria da Fazenda (SEFAZ) via web services.
• Validation and authorization: SEFAZ verifies the document’s validity and grants authorization for use.
• DANFE issuance: Once the NF-e is authorized, the Documento Auxiliar da Nota Fiscal Eletrônica (DANFE) is generated and must accompany the goods during transport.
• Delivery to recipient: The NF-e is electronically sent to the buyer.

Nota Fiscal de Serviços Eletrônica (NFS-e)

The Nota Fiscal de Serviços Eletrônica (NFS-e) is the electronic document used to register service transactions between businesses and professionals. NFS-e issuance is regulated at the municipal level, leading to a wide variety of standards and requirements due to the autonomy of municipalities in defining tax collection procedures. To standardize the process and simplify NFS-e issuance nationwide, the government has established a National NFS-e System, which will become mandatory in 2026.

Characteristics of the National NFS-e System

This system enhances interoperability and reduces the administrative burden for businesses operating in multiple jurisdictions.

• Unified XML NFS-e format for all municipalities.
• Simplified issuance through an official web portal and mobile apps.
• API-based issuance, allowing taxpayers’ business systems to connect with the National Finance Secretariat (SEFIN) servers.
• Declaração de Prestação de Serviço (DPS): A preliminary document sent to SEFIN for approval and conversion into an NFS-e.
• NFS-e events: Ability to register events on an authorized NFS-e, such as cancellations, replacements, and correction letters.
• Documento Nacional de Arrecadação (DNA): A tax collection document for ISSQN (Imposto Sobre Serviço de Qualquer Natureza) valid in all participating municipalities.
• Ambientes de Dados Nacional (ADN): A national repository of NFS-e documents approved within the system.
• Portal da Nota Fiscal de Serviço Eletrônica: An environment for document inquiries and other system-related information.

Nota Fiscal de Serviços de Comunicação Eletrônica (NFCom)

The Nota Fiscal de Serviços de Comunicação Eletrônica (NFCom) was created through Ajuste SINIEF 07/22, approved on April 7, 2022, to simplify invoicing in the communications and telecommunications sectors. Later, Ajuste SINIEF No. 34/24 set the mandatory use at the national level for November 1, 2025.

Currently, companies in this sector must generate monthly XML files (CAT 79) and manually submit them to the tax authority’s portal for auditing. With NFCom, the process will be similar to the Nota Fiscal Eletrônica (NF-e), improving efficiency and automation. Key features of NFCom:

• Standard XML format for nationwide use.
• Electronic signature with a digital certificate.
• NFCom events: Registering modifications, cancellations, or replacements.
• Graphical representation via DANFE NFCom.
• Mandatory five-year archiving period.
• XML and DANFE NFCom delivery via a designated communication channel or email.

Conhecimento de Transporte Eletrônico (CT-e)

The Conhecimento de Transporte Eletrônico (CT-e) is an electronic document used to record and control freight transportation in Brazil. CT-e enhances the traceability of transport operations, allowing tax authorities to verify transactions and ensure compliance with freight transport regulations.

To issue a CT-e, the transport company generates an XML 4.0 file containing all transport details. The document is then electronically signed and sent to SEFAZ for validation and authorization. Once approved, the Documento Auxiliar do Conhecimento de Transporte Eletrônico (DACTE) is issued and must physically accompany the shipment throughout its journey. Using CT-e improves logistics management, reduces administrative costs, and enhances fiscal control over goods transportation.

Requirements for issuing electronic invoices in Brazil

Electronic invoicing in Brazil is regulated and requires compliance with specific technical and fiscal requirements. While each type of e-invoice has unique aspects, all taxpayers must follow a general process to ensure the legal validity of their documents:

• Obtain a digital certificate: Mandatory for signing e-invoices and ensuring authenticity.
• Generate the e-invoice in XML format: Structured according to specifications for each invoice type (NF-e, NFS-e, NFCom, or CT-e).
• Submit the invoice to SEFAZ: Documents must be sent to the Secretaria da Fazenda (SEFAZ) for validation and authorization before being used in a transaction.
• Deliver the invoice to the recipient: Once approved, the e-invoice must be sent to the customer in digital format.

Benefits of electronic invoicing in Brazil

The use of electronic invoicing in Brazil, through NF-e, NFS-e, NFCom, and CT-e, has brought multiple benefits for businesses and tax authorities. Some of the most notable advantages include:

• Cost reduction: Eliminating paper use and digitizing processes significantly lowers expenses related to printing, archiving, and document management.
• Increased speed and efficiency: Automating the invoicing process reduces the time spent on issuance, validation, and transmission, optimizing business operations.
• Tax control and transparency: Validation by SEFAZ enhances oversight of commercial transactions, reducing tax evasion and ensuring compliance with tax obligations.
• Security and traceability: The mandatory use of digital signatures and electronic storage ensures document integrity and facilitates access for audits.

These benefits not only optimize tax management for businesses but also strengthen relationships with tax authorities by promoting transparency and standardization in regulatory compliance.

EDICOM's Global Electronic Invoicing Platform

EDICOM is a global leader in electronic invoicing and tax compliance solutions, offering a comprehensive platform that enables businesses to automate the issuance and receipt of electronic invoices in compliance with each country’s regulations. In Brazil, EDICOM’s platform integrates the generation, transmission, and validation of fiscal documents such as NF-e, NFS-e, NFCom, and CT-e, ensuring full compliance with the requirements set by the Secretaria da Fazenda (SEFAZ).

With its advanced technology, EDICOM helps companies optimize administrative processes by automating workflows, reducing manual errors, and ensuring seamless integration with ERP systems. Additionally, its platform provides electronic storage services, facilitating document management and retrieval in accordance with legal retention periods.

As a specialist in electronic invoicing, EDICOM offers a scalable and adaptable solution that meets diverse regulatory requirements, allowing businesses to operate efficiently and securely in international markets.