NF-e - Mandatory electronic invoicing system in Brazil

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.

Technical Note 2019.001 v1.60 (published on 28.12.23)

The main additions included in this Technical Note are:

• Fields for "Crédito Presumido" information have been introduced. Within Group 1, including Products and Services of the NF-e, an optional section has been added, including fields related to presumed credit information. The use of these fields is at the discretion of each Federation (State).
• A new field has been introduced for the fiscal benefit code (Beneficio Fiscal), aimed at reducing the calculation base within CST51. Within Group 7, which corresponds to the Taxation Group of the Tax on Circulation of Goods and Services Transportation (ICMS = 51), a field labeled "cBenefRBC" has been included. 

This field serves the purpose of specifying the fiscal benefit code for reducing the calculation base within CST51, particularly in cases of accumulation with deferment. The decision to use this field is voluntary for each Federation (State).

What are the changes introduced in version 1.61?

The extension for the implementation of version 1.60 in the homologation environment is extended until March 11, 2024. Additionally, it is noted that the scheme of NT 2019.001 version 1.60 will be published together with the scheme of Technical Note 2023.004. 

What is the implementation schedule?

• The deadline for implementation in the homologation environment is March 11, 2024.
• In the production environment, the deadline is April 1, 2024.

Beneficio Fiscal constitutes a specialized tax framework including exemptions, reductions in the calculation base, presumed credit, rate reductions, or other extensive or partial exemptions that states offer to specific sectors or regions. This serves as a measure for private investments within the state, contributing to job creation and income generation. 

The use of this information is discretionary, contingent upon the regulations implemented by individual states. Currently, the states mandating the using of this tag in Electronic Fiscal Documents include the Distrito Federal, Goiás, Paraná, Rio Grande do Sul, Rio de Janeiro, and Santa Catarina.

Technical Note 2023.005 Version 1.00

This technical note addresses an event (Delivery Failure Event) created to be generated in situations where the delivery of goods could not be made due to the recipient's absence or the incorrect delivery address. Currently, in these situations, the carrier must write on the face of the DANFE the reason for the unsuccessful delivery, and the NF-e issuing company must store it for 5 years, according to AJUSTE SINIEF 07/05:

"The entity issuing the NF-e is required to retain, in accordance with the duration specified by tax legislation, the DANFE that accompanied the return of non-delivered goods to the recipient. This document should include details about the reason for the event."

The two events created in this Technical Note are:

• Insucesso na Entrega da NF-e (tpEvento= 110192)
• Cancelamento do Insucesso na Entrega da NF-e (tpEvento= 110193).

The idea of this event is to replace this paper process, bringing more efficiency to the delivery process of the country's corporations, especially in the e-commerce sector.

The dates for the implementation are:

Implementation date: 05/13/2024
Production date: 06/24/2024

These two events are discretionary. In other words, it is up to the company to decide whether to implement them or not. If the company chooses not to adopt them, it will be necessary to continue with the manual process of retaining the DANFE.

Technical Note 2023.004 Version 1.00 – ECONF – Financial Reconciliation Event

This Technical Note focuses on the Financial Reconciliation Event (Evento de Conciliação), designed to establish a connection between payments made for each issued NF-e. The objective is to enhance traceability between payments and the corresponding payment method occurring after the generation of the NF-e by the issuer. Upon receipt of payment, the NF-e issuer generates this event to link it to the specific NF-e that has been paid. 

Additionally, this Technical Note introduces the cancellation event ECONF for the cancellation of the ECONF event.

Adjustments SINIEF No. 3/2023 and 10/2023 foresee this event.

In addition to introducing the ECONF Event, this Technical Note incorporates new fields into the NF-e layout within the YA group, specifically under Payment Information. The CNPJPag and UFPag fields are discretionary, providing an option for the issuer who wishes to disclose the CNPJ and UF of the establishment where the payment was processed, transacted, or received, particularly in cases where the NF-e issuance occurs at a different establishment. The CNPJReceb and idTermPag fields serve the purpose of conveying the CNPJ of the payment beneficiary and the identifier of the payment terminal, facilitating the integration of payment details with the issuance of the electronic fiscal document.

It is important to note that the use of these events is at the discretion of the company, meaning that it is the company's choice whether to adopt them or not.
 

Procedure for generating and validating an Electronic Invoice:

1. The XML file is signed with a digital certificate.
2. The electronic invoice is transmitted to SEFAZ via web service.
3. SEFAZ performs a pre-validation check and returns an authorization for use to allow the movement of goods.
4. To legally cover the transit of the cargo, the company prints the DANFE (Auxiliary Document of the Electronic Invoice) on regular paper.
5. 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.