Brazil Eliminating Access to Free E-Invoicing Software

Brian Elswick
November 7, 2017

These states are making the move away from free e-invoicing software for several reasons, including the sheer difficulty involved in managing technology capable of meeting Brazil’s compliance requirements. As they do for companies, compliance measures have been forcing these governments into the business of change management, constantly updating and maintaining software, but now they are extricating themselves from the technological components of compliance. For example, states in Brazil would need to invest heavily to be able to handle the TSL protocol required under Nota Fiscal 4.0, and at least one so far (Sao Paulo) has decided not to make that investment. 

A secondary, but equally important reason for states to eliminate the access to free e-invoicing software is risk management. The government does not want to be responsible for any errors or technical glitches that result in a company not meeting compliance requirements. Now, that burden will fall solely on businesses operating in Brazil. Businesses will need to ensure that they not only use the appropriate XML e-invoicing structure and correct submission protocols, but also that they have contingency plans in place in the event of transmission issues.

With the transition away from free software, it’s clear that state governments in Brazil have been facing many of the same compliance challenges that businesses do – most notably, constant change management and risk reduction. These governments are starting to realize that it’s too resource intensive to be in the business of compliance technology. Businesses are realizing the same. Those that have managed compliance internally are facing constant fire drills to update their systems with each regulation change, and are turning to intelligent compliance solutions that create efficiencies and minimize audit risk.

Take Action

At Sovos, our clients have seen decreased costs, improved operations and reduced fines and penalties based on this Intelligent Compliance approach. Read our case studies to see how.

Sign up for Email Updates

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

Author

Brian Elswick

Brian Elswick is the Marketing Programs Manager for Sales & Use Tax, Business-to-Government Reporting, and VAT.
Share This Post

LATAM VAT & Fiscal Reporting
May 20, 2020
Sovos Acquires Taxweb, Extends Tax Determination Capabilities in World’s Most Challenging Compliance Landscape

Earlier this month Sovos announced its second acquisition of 2020, completing our solution for Brazil with an unparalleled offering that solves tax compliance in the place where it is most challenging to do so.  Too many companies doing business in Brazil have been burdened by managing multiple point solutions for continuous transaction controls (CTCs), tax […]

Sales & Use Tax United States
November 30, 2020
Important Details on the Tennessee Economic Nexus

Following the South Dakota v. Wayfair, Inc. decision, almost every state has adjusted its sales tax nexus. The Tennessee economic nexus is no exception. Initially, Tennessee required remote sellers with $500,000 or more in sales to Tennessee customers to register and collect Tennessee sales and use tax. However, as of October 1, 2020, the threshold […]

Sales & Use Tax United States
November 30, 2020
West Virginia Sales Tax Nexus Details

The West Virginia sales tax nexus changed after the South Dakota v. Wayfair, Inc. decision. Effective January 1, 2019, remote sellers that have no physical presence in the state must now register, collect and remit sales and use taxes in West Virginia should they meet the threshold or transaction amount. In addition to the remote […]

EMEA Spain VAT & Fiscal Reporting
November 26, 2020
Spain Extends SII Scope From 2021

The tax authority in Spain, Agencia Estatal de Administración Tributaria (AEAT), aiming to enhance the Immediate Supply of Information (SII) version 1.1, has introduced new validations and fields to the schema expected to be enforced from 1 January 2021. The new fields will record the sales of goods in consignment (Venta de bienes en consigna) […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
November 25, 2020
Audio Blog: Brexit and VAT

Brexit: What are the Implications for VAT Brexit is set to become reality at the end of December. So, what does it mean for organizations doing business in the UK and the European Union? Turns out, there are several tax implications that will need to be accounted for. In this episode of the Sovos Expert […]

EMEA VAT & Fiscal Reporting
November 25, 2020
HMRC issue guidance on VAT accounting processes for goods moving between Great Britain and Northern Ireland from 1 January 2021

HMRC has published a policy paper that outlines the VAT accounting process for goods moving between Great Britain (GB) and Northern Ireland (NI) from 1 January 2021. As from 1 January 2021, the Northern Ireland protocol will come into force which means that NI will remain in the part of the single market and customs […]