Brazil Announces Official Launch of NFSe Pilot Program

Gustavo Jimenez
October 25, 2017

Currently, companies in Brazil must submit two separate types of invoices to the tax authority – product invoices (NFe) and service invoices (NFSe). Product invoices for goods and raw materials are standardized throughout the country, allowing companies to centralize their compliance processes; however, service invoices vary heavily depending on the city.

NFSe are simpler in some ways than product invoices because they don’t involve shipping and logistics. However, the challenge these invoices present is that services are often taxed within different jurisdictions than goods and taxed at different rates in each municipality. In Brazil, that means services are billed at the city level, while taxes on goods are billed at the state level.

When Brazil first implemented e-invoicing for services, the complexity of this tax structure presented several challenges, resulting in over 50 systems used in different manners across hundreds of cities. That is why the country is now attempting to unify e-invoicing for services at the city level in its seven largest jurisdictions. In short, the goal of the NFSe pilot program is to standardize invoices like their NFe counterpart, making the entire process of e-invoicing simpler on businesses and governments alike.

 

What do these NFSe changes mean for companies?

Companies providing services in the following jurisdictions will begin using the new NFSe schema in December:

  • Rio de Janeiro
  • São Paulo
  • Brasilia
  • Belo Horizonte
  • Porto Alegre
  • Maringá and Marabá

Essentially, the revised NFSe model will provide a unified solution for issuing invoices and bring improvements to the business environment by rationalizing and standardizing ancillary obligations and making a national standard available. With this change, companies in Brazil will be able to more effectively centralize their compliance with service invoice requirements.

Though the challenges associated with today’s e-invoicing landscape are cumbersome, an intelligent approach to compliance means that companies will not only meet all the necessary requirements to avoid fines, penalties and operational disruptions, but also that they will be able to find efficiencies and opportunities within these mandates. This new service invoice shift will help companies in Brazil increase those efficiencies.

 

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

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 […]