Brazil Announces Official Launch of NFSe Pilot Program

Gustavo Jiménez
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 Jiménez

Gustavo Jimenez is the Product Marketing Manager for Sovos’ e-invoicing solutions and is based in Atlanta. Gustavo is responsible for go-to-market strategy for Sovos LatAm e-invoicing solutions in countries with existing and upcoming mandates. He has more than five years of experience in e-invoicing, middleware integrations, and regulatory research. He works closely with the product management and development team as well as sales and marketing to facilitate compliance process transformations for Sovos clients. Prior to joining Sovos, Gustavo was responsible for marketing activities and strategy at Invoiceware International, a leading e-invoicing solution for businesses with operations in Latin America. He focused on the go-to-market strategy of their solutions as well as communications with the LatAm market about regulatory changes and new solutions.
Share This Post
Share on facebook
Share on twitter
Share on linkedin
Share on email

North America ShipCompliant
June 18, 2021
How to Streamline Your Wine Shipping With UPS and FedEx

Wineries that use FedEx or UPS to print shipping labels for beverage alcohol packages can integrate with ShipCompliant to streamline the fulfillment process. This means: No more typing addresses to print labels One click can pull all shipment information from ShipCompliant into FedEx or UPS –  your labels are ready to print Tracking numbers sync […]

EMEA Tax Compliance VAT & Fiscal Reporting
June 17, 2021
Poland VAT Reporting: Draft Amendments to JPK_V7M/V7K Published

In Poland, the Ministry of Finance proposed several changes to the country’s mandatory JPK_V7M/V7K reports. These will take effect on 1 July 2021. The amendments offer administrative relief to taxpayers in some areas but create potential new hurdles elsewhere. Poland JPK_V7M and V7K Reports The JPK_V7M/V7K reports – Poland’s attempt to merge the summary reporting […]

North America ShipCompliant
June 17, 2021
Can Retailers Do Direct-to-Consumer (DtC) Wine Shipping?

The demand among retailers and consumers for interstate direct-to-consumer (DtC) wine shipping is growing, further bolstered in the wake of the COVID-19 pandemic. Retailer DtC shipping is allowed in just 15 states and the District of Columbia, but retailers still saw significant increases in online orders and DtC shipping in the past year. But what […]

EMEA VAT & Fiscal Reporting
June 16, 2021
VAT Trends: A Shift Toward Destination Taxability for Certain Cross-Border Transactions

As detailed within our annual report VAT Trends: Toward Continuous Transaction Controls, there’s an increasing shift toward destination taxability which applies to certain cross-border trades. In the old world of paper-based trade and commerce, the enforcement of tax borders, between or within countries, was mostly a matter of physical customs controls. To ease trade and […]

EMEA Latin America Mexico VAT & Fiscal Reporting
June 15, 2021
Understanding Mexico’s Carta Porte Supplement

On 1 May 2021, the Mexican tax administration (SAT) released one of the most important updates to the electronic invoicing system of the country since 2017. The update was about the new Bill of Lading Supplement (locally known as Suplemento de Carta Porte) that should be added as an annex to the electronic invoice (CFDI) […]