North America
Sales Tax Nexus

Solve Your Sales Tax Nexus Challenges for Good

The recent Supreme Court decision “South Dakota v. Wayfair” redefined what constitutes economic nexus for your business. Nexus is no longer determined by your physical presence in a state. Your economic nexus obligations are now based on the sales revenue and transaction volume you generate in a given state, regardless of your physical presence there.

This ruling is a massive opportunity for states to generate revenue. And they’re taking full advantage in the form of aggressive enforcement.

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Economic Nexus State Updates

As of October 2019, only two states remain without economic nexus laws. This means your business has up to 48 different sales revenue and transaction volume thresholds to keep track of in case of an audit.

In November 2019, the state of California began sending out “thousands of notices” to third-party merchants on Amazon that have failed to meet their nexus obligations.

Could this be the beginning of a nation-wide trend?

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The Challenge

What to expect for the future

Nine more states (including Louisiana) have gone live with economic nexus laws since July 2019. Kansas currently has its economic nexus law (intended to take effect 10/1/2019) in dispute.

Full state-by-state sales tax nexus breakdown

Sales tax nexus by state

 

Streamlined, accurate filing in every jurisdiction

The Wayfair ruling forever changed the sales tax landscape for online retailers in the U.S., further complicating an already complex compliance environment. But that doesn’t mean your company is condemned to noncompliance.

Sales & Use Tax Filing

Sovos Sales & Use Tax Filing relieves the burden caused by new and varying sales tax nexus rules by automating your sales and use tax filing obligations. This gives you peace of mind knowing your filings will be on time and accurate, and you’ll have more time to focus on other critical tasks.

Sales & use tax filing

Schedule a demo to see how Sovos can solve your sales tax nexus filing challenges for good.
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Electronic invoicing in Brazil

Brazil is widely regarded as a major player in the world of electronic invoicing, largely due to the sheer number of electronic tax documents and e-invoicing models it has in place. If you’re a taxpayer in Brazil, you will have to issue electronic invoices.

From electronic transport invoices to standard e-invoices for tax, there is a lot to consider when operating in Brazil. This page has all the electronic invoicing information you need to be aware of your obligations and will be updated when necessary, so bookmark the overview to add it to your compliance toolkit.

Table of contents

1. How does e-invoicing work in Brazil?

2. Characteristics of electronic invoicing in Brazil

3. Format of electronic invoices and documents in Brazil

4. NF-e invoices

5. NFS-e invoices

6. What is the CT-e | Electronic Transportation Invoice?

7. E-signature requirements in Brazil

8. Timeline of e-invoicing adoption in Brazil

9. Penalties: What happens if I don’t comply with e-invoicing in Brazil?

10. What else do I need for VAT compliance in Brazil?

11. Setting up e-invoicing in Brazil with Sovos

12. FAQ

13. Additional resources

How does e-invoicing work in Brazil?

While there are several e-invoice types in Brazil, there is a general process that taxpayers need to follow when issuing invoices electronically. While some steps may vary per invoice type, the process often includes:

  • Applying for a digital signature
  • Generating an electronic invoice in XML format
  • Submitting the invoice via web service to SEFAZ (Secretaria da Fazenda Estadual)
  • Sending the invoice to the customer

Characteristics of electronic invoicing in Brazil

Brazil B2B e-invoicing

In Brazil, issuing electronic invoices – of which there are several types – is mandatory for all taxpayers. If a business is established in Brazil and supplies goods or services, it must participate in the country’s e-invoicing initiatives.

There are numerous electronic invoicing systems in Brazil, and the product category of goods supplied dictates which system will be used.

Brazil B2G e-invoicing

E-invoicing is mandatory for all established businesses in Brazil, including when issuing invoices to governmental and public administration entities.

Format of electronic invoices and documents in Brazil

Brazil has a complex, somewhat fragmented e-invoicing system that requires taxpayers to use specific systems – depending on the category of the goods or services they supply. To ensure compliance, organisations and persons alike must be aware of what’s required of them when issuing an electronic invoice.

While there are several e-invoice types in the country, there are specific characteristics of electronic invoices. Electronic signatures are required no matter the invoice type, and the documents need to be securely archived for five years. Each invoice type is in a structured XML format, and they need to be validated by the Brazilian tax authorities before being issued to the buyer.

NF-e invoices

The NF-e electronic invoice is Brazil’s standard electronic invoice for documenting the transaction of goods and services.

It is issued electronically to the buyer and the Brazilian government. To be deemed legitimate, NF-e e-invoices must be validated by the tax authority.

NFS-e invoices

Unlike Brazil’s standard electronic invoice, NFS-e e-invoices document the transaction of services. Like NF-e e-invoices, NSF-e documents must be transmitted electronically and validated by the Brazilian government.

What is the CT-e | Electronic Transportation Invoice?

CT-e documents are also known as electronic transportation invoices. These e-invoices document the transportation of goods in Brazil via:

  • Air
  • Pipeline
  • Rail
  • Road
  • Water

When using a transport service that is external to the company fulfilling the transaction, the buyer must validate the CT-e e-invoice and list it in its monthly report to the government.

E-signature requirements in Brazil

Brazil requires e-invoices to be protected by an electronic signature. This technology irrefutably proves the signing parties’ identity and the document’s integrity.

Once signed by the seller and the buyer, the e-invoice is considered valid from both a legal and fiscal standpoint – especially considering that invoices are also validated by the tax authorities.

Timeline of e-invoicing in Brazil

Brazil was an early adopter of electronic invoicing, though the implementation took time. Here are the key dates of the country’s e-invoicing implementation:

  • 2005: Brazil publishes its first e-invoicing legislation, introducing a clearance model
  • 2008: Taxpayers became obligated to issue electronic invoices
  • 19 April 2023: Electric energy e-invoices (NF3-e) are introduced, with staggered implementation of mandated use
  • 1 September 2023: Individual micro-entrepreneurs (MEI) that are not subject to Interstate Sales Tax (ICMS) are obligated to issue e-invoices

Penalties: What happens if I don’t comply with e-invoicing in Brazil?

There is a price to pay for failing to comply with Brazil’s e-invoicing regulations. Drastic cases of non-compliance may be considered a criminal offence, such as tax evasion.

Taxpayers can be charged a financial penalty of up to 100% of an invoice’s value or transaction price should they fail to issue an e-invoice. This same penalty may apply if electronic invoices do not meet legal and technical requirements.

What else do I need for VAT compliance in Brazil?

While you must stay on top of your e-invoicing regulations in Brazil, additional tax compliance considerations exist.

We have a dedicated page for Brazil VAT Compliance that is a companion tool to this e-invoicing overview, carefully detailing other tax-related regulations that may apply to you.

FAQ

E-invoicing is mandatory for all established taxpayers in Brazil.

All established taxpayers in Brazil are required to issue electronic invoices.

Electronic invoices can be cancelled in Brazil, but the time required may differ depending on the taxpayer’s state of operation.

Generally, an electronic invoice for goods can be cancelled within the first 24 hours of its validation by the Brazilian tax authorities. That said, this may differ state-by-state, so verifying the deadline with the SEFAZ is important.

As a rule, the NF-e must contain registration data such as CNPJ (National Register of Legal Entities), address and other data of both the issuer and recipient, as well as information such as product code, description, quantity, unit value and details about taxes such as ICMS, IPI, PIS, COFINS, among others, and a valid digital signature. Electronic invoices must be in XML format.

Setting up e-invoicing in Brazil with Sovos

With electronic invoicing becoming more common globally, following the lead of Latin American countries like Brazil, it is important to prioritise compliance.

The global – yet fragmented – adoption of e-invoicing solidifies the need to choose a single vendor for complete compliance wherever you do business. Sovos is a tax compliance partner you can trust.

Focus on what truly matters: speak with Sovos today to reclaim your time.

Complete the form below to speak with one of our e-invoicing experts

Additional resources for e-invoicing compliance

Sovos for SAP

Prepare Your SAP Solutions for the Digital Future of Tax
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The First Global Solution For E-Invoicing Compliance

Find your global solution to e-invoicing
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Tax Rules, Mandates and Regulations in Latin America

Find out more about e-invoicing obligations in other countries
Learn more

Greece myDATA

In 2020, Greece introduced a continuous transaction controls (CTC) scheme, called myDATA – an e-audit system. myDATA requires taxpayers to transmit transactional and accounting data to the tax administration, in real-time or periodically, which populates a set of online ledgers maintained on the government portal.

The goal of myDATA is for the online ledgers to be the only source of truth of the taxpayer’s tax and financial results, and for their respective information to pre-fill the taxpayer’s VAT returns and financial statements.

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Table of contents

1. Greece myDATA quick facts

2. What information must be declared in the myDATA portal?

3. What are the myDATA filing submissions?

4. What types of documents must be reported by issuers and recipients for myDATA?

5. Greece myDATA rollout dates

6. Penalties

7. Sovos helps to stay compliant with Greece’s myDATA

8. FAQ Greece myDATA

9. Additional resources

Greece myDATA quick facts

  • The myDATA scheme applies to Greek taxpayers obligated by law to keep their accounting records as per the Greek Accounting Standards. It covers B2B, B2G, and B2C transactions.
  • myDATA eBooks record: a summary of income and expense transactions, classifications of transactions, accounting adjustments which aim to provide a comprehensive overview of the taxpayer’s accounting and tax results.
  • When businesses file their tax returns, the data declared in them will be reconciled against the data in the eBooks.
  • A discrepancy between the eBooks and the tax returns triggers a two-phased reconciliation process whereby the taxpayer should correct the resulting difference, otherwise audits or penalties will be incurred.

What information must be declared in the myDATA portal?

The myDATA portal requires the reporting of:

  • Transactional data: e.g. B2B, B2G, B2C invoices, credit notes, debit notes
  • Accounting data: data which forms the accounting and tax results of businesses on the myDATA portal, e.g. payroll, depreciations, amortisations

Suppliers and buyers must each classify transactions into subcategories, such as revenue from the sale of goods, expense from acquisition of services, revenue from provision of services, expense from amortisation, expense from intracommunity purchase of goods, etc.

What are the myDATA filing submissions?

The required data must be reported in different filing frequencies depending on the type of data and the data transmission method.

In principle, myDATA filing frequencies are:

  • Revenue: reported in real-time
  • Expenses: reported periodically following the deadlines for the submission of the VAT return (monthly or quarterly)
  • Other accounting entries (revenue or expense): reported bi-monthly (payroll) or yearly (e.g. accounting adjustments, depreciations).

Data transmission methods can include ERP, manual upload and the central e-invoicing application (timologio).

What types of documents must be reported by issuers and recipients to myDATA?

Issuers and recipients must report different documents to myDATA.

Issuers:

Issuers must report revenue from the different types of transactional and accounting documents they issue. Examples of documents issuers need to report include B2B/B2G/B2C invoices, transport documents, payroll, depreciation, contracts etc.

Recipients:

Recipients must report expenses from different types of transactional and accounting documents they receive. Examples of documents recipients need to report include domestic B2C invoices, B2B/B2C invoices from foreign suppliers, utility bills, credit notes, payroll, amortisations, contracts, etc.

Additionally, if domestic issuers have not reported their required data to the myDATA platform, recipients must report them as omissions or deviations.

All businesses:

All businesses (issuers and receivers) must send classifications for their transactions, e.g. as revenue from sale of goods, expense from acquisition of services, expense from amortisation, expense from intracommunity purchase of goods etc.

Greece myDATA rollout dates

  • 20 July 2020: E-invoicing and reporting through accredited e-invoicing vendors begins
  • 1 October 2020:  Voluntary reporting of revenue and expenses begins, as well as classifications through all reporting methods
  • 1 October 2021:  Phase 1 of mandatory myDATA requirements begins, for revenue and certain taxpayers.
  • 1 November 2021: myDATA scope extended to include revenue and all taxpayers.
  • 1 January 2024: myDATA law applies for all data in scope generated in 2024, with few exceptions.
  • 2 June 2025: Mandatory submission of transport document data to myDATA applies to the first two groups of obliged taxpayers (gross revenue exceeded EUR 200K based on their 2022 income tax return or operating in certain fields, such as fuels, pharmaceuticals, construction materials, or olive oil production as their main revenue activity in 2022).
  • 1 December 2025: Mandatory submission of transport document data to myDATA applies to all taxpayers under the myDATA.

For the latest deadline changes, follow our Greece myDATA blog for updates.

Penalties

Failure to achieve consistency between the data registered in the e-books and the reported data in the tax returns triggers penalties or tax audits.

Penalties were established in December 2023, through Law 5073/2023 (FEK A’ 204) on “Measures for the limitation of tax evasion and other urgent provisions” in the event of failure and overdue submission of the required data, as well as in the event of violation recurrence within five years.

The penalties relate only to violations of the compliant reporting of income from invoices and other accounting entries (not expenses), as well as the recently introduced e-transport document.

The implementation timeline and other details about the adopted penalties is yet to be published.

How Sovos helps to stay compliant with Greece's myDATA

Sovos serves as a true one-stop-shop for managing VAT compliance obligations in Greece and CTC compliance obligations across the globe. Sovos uniquely combines local excellence with a seamless, global customer experience.

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FAQ

Reporting and transmission of data to the myDATA platform is currently mandatory for taxpayers. Expansion of myDATA obligations is ongoing, with, e.g., the implementation of mandatory submission of transport document data, and deadlines and requirements continue to be updated.

The myDATA scheme applies to Greek taxpayers obligated by law to keep their accounting records as per the Greek Accounting Standards. It covers B2B, B2G, and B2C transactions.

The required documents are reported to myDATA through the following methods: the ERP, e-invoicing via accredited service provider, manual upload, central e-invoicing application (‘timologio’), fiscal devices (FIM).

Related resources

Greece e-invoicing

Discover the larger picture of compliance in Greece.
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Greece VAT Compliance

Understand the overall tax compliance landscape in Greece.
Find out more
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