2017 Marks Year of Changes in Brazil: Brazil Overhauls NFe and CTe

Sovos
August 29, 2017

Already known as a worldwide leader in technology-driven tax compliance, Brazil has announced several changes and additions to its requirements starting in 2017. These changes, designed to close reporting loopholes and gather even more information to improve validations, affect Brazil’s e-invoicing and transportation tracking processes, as well as introduce new measures to monitor social security and inventory details.

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.

Post by Gustavo Jimenez 

Take Action

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. In the meantime, watch our On-Demand Webinar: Understanding Brazil NFe 4.0 changes in 2017 for more details on Brazil’s e-invoicing updates.

 

Sign up for Email Updates

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

Author

Sovos

Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports 5,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.
Share This Post

Sales & Use Tax United States
June 17, 2019
South Dakota v. Wayfair One Year Later – Retrospective and Look Ahead Webinar

Since the groundbreaking Supreme Court decision in South Dakota v. Wayfair last June, tax compliance requirements of sellers have undergone a seismic shift. In recent months, we have also witnessed a series of after-shocks directed at setting the foundation for U.S. sales tax compliance in the modern age. In a live webinar and Q&A, “South […]

United States
June 14, 2019
Sovos Again Named a Top Workplace Based on Employee Satisfaction

Earlier this week, the Star Tribune (Minneapolis, MN) released its annual list of Top Workplaces. The newspaper compiles this list based on employee satisfaction scores for companies across Minnesota. Sovos has once again been named to this list as a national standard setter of leading workplaces because of the actions we take to put employees […]

E-Invoicing Compliance EMEA
June 13, 2019
French VAT Fraud Prevention Package to Include a New Attempt to Mandate B2B E-invoicing

The French Minister of Public Accounts and Action, which has authority over all tax matters, has taken advantage of the process that is required to transpose the EU E-Commerce Directive to launch a number of initiatives to curb VAT fraud, including a renewed attempt to create a system of mandatory e-invoicing. Going from B2G to […]

EMEA IPT
June 13, 2019
Knowing When and How to Reclaim IPT

An insurer may need to reclaim insurance premium tax (IPT) from a tax authority for many reasons. These include a policy cancellation or mid-term adjustment, an administrative error or issuing a no claims bonus. In each case, it’s important to be aware of the issues involved ahead of any reclaim to ensure taxes are recovered […]

Sales & Use Tax United States
June 7, 2019
Marketplace Sales Tax Collection Rules and Current State of Affairs

Marketplace sales tax laws are being used by states as an additional means to collect more sales tax revenue from remote sellers on marketplaces like Amazon, eBay, Etsy, and WalMart. These online marketplaces and the rules being introduced to compel marketplace tax compliance have introduced new sales tax collection and remittance questions and complexity. According […]