Something that is common sense, regarding the relevance of issuing electronic invoices in Brazil, is the fact that this invoice serves as a guarantee for a purchase transaction and sale. Both services and goods.
However, in addition to the proof function, in Brazil the electronic invoice system allows the government to have more control over the transactions that take place in Brazil, accurately crossing what companies and individuals buy or sell.
Of course, this is the most modern and current context of electronic invoices in Brazil. But, if we look at the past, we understand that the invoice and its issuance process underwent numerous changes over the years. Going through the issuance in receipt – in more than 5 copies and filled in by hand -, issuance in electronic machines and dot-matrix printers of forms and, more recently, issuance by (exclusively) electronic means. This format is today an essential tool of SPED (Public Digital Bookkeeping System), an instrument of the Brazilian State that seeks to promote the integration and standardization of tax authorities, standardization of accessory obligations, and identification of tax offenses.
Today we will talk a little about the operation of electronic notes in Brazil, types, obligations, and possible parallels and differences with the international model of invoices.
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Invoices in Brazil, their importance and benefits
The electronic invoice, by its nature, is an exclusively digital document, issued, authenticated by the government in real-time, and also in digital custody. There is a physical representation of the invoices, DANFE (Documento Auxiliar da Nota Fiscal Eletrônica), printed according to technical standards established by the Tax Authorities.
In Brazil, the Electronic Invoice has, as we have seen, the responsibility of guaranteeing the formalization of purchase and sale operations, in addition to preventing tax evasion and guaranteeing the correct payment of taxes.
Today, in electronic format, the note also reduces paper consumption, in addition to allowing integration with management systems (ERPs) and the issuance of numerous reports.
Composing the SPED, the electronic invoice the following types of documents:
- NF-e (Electronic Invoice of Products or Goods)
- CT-e (Electronic Transport Bill – note for intercity transport operations)
- NFS-e (Electronic Invoice of Services )
- NFC-e (Electronic Consumer Invoice – invoice used in retail)
- CF-e (Electronic Tax Coupon – invoice used in retail)
- Electronic Tax Module (MF-e)
- MDF-e – Electronic Tax Document Manifest
- Nota Fiscal Avulsa (NFAe)
The main benefits of electronic invoices today, in Brazil, are:
- Possibility of integration with financial management, sales, and ecommerce platforms;
- Guarantee of authenticity of invoices;
- Standardization of the issuance of documents;
- Reduction of administrative expenses;
- Gain in scale with automation;
- The gain in efficiency and performance.
Issuance of electronic invoices in Brazil and difference in relation to invoices?
The issuance of electronic notes in Brazil occurs according to the nature of the company. That is, from the definition of the category of sale of companies, which occurs through the CNAE (National Classification of Economic Activities). From there, some details are established, such as tax rates and the category of products that may or may not be sold by the organization.
Unlike the invoice concept, which essentially implies issuing a file with tools such as text editing, informing little information such as the name of the selling company, date, and value of the sale. In addition, it is necessary to understand the purpose of the invoice. There are two concepts of invoice:
- Invoice for sellers: it is the sales invoice and goes to accounts payable.
- Invoice for buyers: it is purchase invoice and goes to accounts receivable.
With these details, it is possible to create an invoice.
For the electronic note, in addition to meeting requirements such as technical layout, it is necessary to present CNPJs – Cadastro Nacional da Pessoa Jurídica (companies tax ID payer) of correct issuers, in addition to an electronic signature with a digital certificate.
Legal Representation, Digital Certificate and Billing
Among other requirements for billing, the digital certificate is one of the main ones. And, in Brazil, to issue and authenticate it, the holder of the legal entity must be present to sign documents. In their absence, which commonly occurs for foreign companies operating in Brazil, the legal representative will be the one indicated and responsible for granting and issuing the file.
In this context, having a partner to carry out the legal representation of the company in Brazil brings ample agility for the start of operation with correct billing and compliance with legal requirements.
Conclusion
The billing structure and electronic invoices in Brazil are deeply complex and have requirements that, if not met, can lead to invoicing being impossible. Therefore, understanding the functioning of the Brazilian billing structure and knowing which moments and information are mandatory is the path to legal compliance with the Tax Authorities.