Brazil Eliminating Access to Free E-Invoicing Software

Brian Elswick
November 7, 2017

This blog was last updated on March 11, 2019

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

2025 tax filing season
North America Tax Information Reporting
November 21, 2024
Top 5 FAQs to Prepare for the 2025 Tax Filing Season

This blog was last updated on November 21, 2024 While “spooky season” may be over for most of us, the scariest time of year for many businesses is right around the corner: tax filing season. As they brace themselves for the flood of forms, regulatory updates, and tight deadlines, the fear of missing a critical […]

dtc shipping law updates
North America ShipCompliant
November 13, 2024
DtC Shipping Laws: Key Updates for Alcohol Shippers

This blog was last updated on November 13, 2024 When engaging in direct-to-consumer (DtC) shipping of alcohol, compliance with different state laws is paramount and so keeping up with law changes is critical. In 2024, the rules in several states for DtC have already been adjusted or will change soon. Here is a review of […]

sales tax vs. use taxes
North America Sales & Use Tax
November 8, 2024
Sales Tax vs. Use Tax, Explained. Who Reports What, and When?

This blog was last updated on November 19, 2024 One of the core concepts in sales tax compliance is also one of the most frequently misunderstood: the differences between sales tax and use tax. These tax types may look similar on the surface, but knowing the differences is essential for staying compliant and avoiding costly […]

2025 bond project
North America Tax Information Reporting
November 4, 2024
2025 NAIC Bond Project – The Insurer’s Guide

This blog was last updated on November 14, 2024 The regulatory landscape for insurance companies is undergoing significant changes with the Principles-Based Bond Project which is set to take effect on January 1, 2025. These changes, driven by the National Association of Insurance Commissioners (NAIC), will impact how insurance companies classify and value bond investments, […]

E-Invoicing Compliance EMEA VAT & Fiscal Reporting
November 1, 2024
VAT in the Digital Age Approved in ECOFIN

This blog was last updated on November 7, 2024 The long-awaited VAT in the Digital Age (ViDA) proposal has been approved by Member States’ Economic and Finance Ministers. On 5 November 2024, during the Economic and Financial Affairs Council (ECOFIN) meeting, Member States unanimously agreed on adopting the ViDA package. This decision marks a major […]