2017 Marks Year of Changes in Brazil (Part 1): Brazil Overhauls NFe and CTe

Gustavo Jimenez
August 29, 2017

A Closer Look at NFe 4.0

Nota Fiscal (NFe) version 4.0 marks the first new release of Brazil’s e-invoicing schema in two years, and companies can expect a major change from their previous compliance processes. NFe 4.0 requires a new XML structure, new fields, new data, new communication protocols and new web services, impacting both IT and business users.

Currently, businesses are able to test and validate NFe under the new requirements. Effective October 2, 2017, all NFe will be validated using the new parameters under 4.0, and as of April 2, 2018, version 3.1 will be completely sunset.

Major changes under NFe 4.0 include:

  • Changes to web services: Because of the new security protocols, all of web services need to be changed.
  • New fields for shipping information
  • New calculations to line item poverty fund contributions
  • New field to identify payment method (check, cash, credit card)

Other changes specifically affect key industries, including:

  • Sanitary products (agricultural, veterinary, dentistry, medicines, beverages, bottled water, packaging, etc.): These companies are required to include batch number, quantity, production date and expiration date for added insights in the event of a recall.
  • Oil and gas: Additional fields, codes and calculations are required for energy companies.
  • Medical and pharmaceuticals: These companies have to submit new fields to supply the National Health Surveillance Agency (ANVISA) with added information.

The biggest challenge that NFe 4.0 presents to companies in Brazil is determining the IT and business process changes that will need to be adopted in order to maintain compliance. Contact us for an assessment.

CTe Freight Tracking Expands

On December 4, 2017, the previous version of CTe will be sunset in favor of a new version that is currently in the production environment. CTe version 3.0, which must be collected, validated and archived for all freight charges, includes changes to several fields:

  • Time zone must now be added to the date field
  • The maximum number of characters allowed in tags has increased
  • New tags for transportation type and multi-modal transit

Since CTe directly affects a company’s ability to ship, understanding how these changes will impact your business processes is critical. Any errors or transmission issues can shut down your supply chain, making effective compliance critical to keep operations running smoothly.

Stay tuned for details on other changes in Brazil compliance, including REINF social security reporting and Bloco K inventory tracking, coming in Parts 2 and 3 of this series.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Gustavo Jimenez

Gustavo is Sovos’ Product Marketing Manager for eInvoicing solutions.
Share This Post

Tax Information Reporting United States
July 11, 2019
Why the IRS Needs to Release Cryptocurrency Tax Guidance

Despite IRS Commissioner Charles Rettig’s promise of “within the next 30 days” more than 30 days ago to Congress regarding the release of forthcoming cryptocurrency tax guidance, we have not seen anything materialize.  As we mentioned previously, the ongoing confusion related to tax reporting obligations continues to plague payers such as crypto or digital currency […]

EMEA Tax Compliance
July 10, 2019
New Regulation Reinforces Free Flow of Data in the EU

When thinking about the aim of GDPR, one of the first things that comes to mind is the set of rules, obligations, and restrictions on the processing of personal data. When in fact, as the full title of GDPR – General Data Protection Regulation – and its recitals explain, the subject matter and purpose of […]

E-Invoicing Compliance EMEA
July 10, 2019
Greek E-Invoicing Reform: Potential Impact of Recent National Elections

On 7 July, Greece began voting to elect a new government.  The disposed governing left party has been dealt with a hefty blow having been in power since 2015.  It was hoped they would introduce less severe politics which many claim they have not only failed to do but, in fact, they actually introduced stricter […]

Tax Information Reporting United States
July 9, 2019
The IRS Is Allowing TIN Masking on Form W-2. Here’s Why It’s a Good Idea

At last, the IRS is allowing payers to truncate, or effectively mask, tax identification numbers (TINs) on Forms W-2 sent to payees. The decision comes after years of concern from companies and taxpayers about the risk of exposing TINs, or Social Security Numbers in the case of individual payees, in W-2 distributions.  The new policy […]

EMEA IPT
July 9, 2019
Interpreting Insurance Tax Legislation

Tax legislation is sometimes structured, or worded, ambiguously.  This leaves scope for a number of different interpretations for the treatment of tax on insurance policies, some leading to a lower tax liability than others. This can often be seen when different insurance premium tax (IPT) rates apply to specific sub-classes of the same business or […]