Brazil Nota Fiscal Eletrônica overhaul for VAT launch

Brazilian e-invoicing changes with VAT implementation from 2026

The long-established mandates for various Nota Fiscal (‘NF’) e-invoicing are to be updated for the planned introduction of VAT in Brazil. Two new notices have been published by the tax office covering proposed changes for new data requirements:

• NF-e  for provision of goods to businesses; and
• NFC-e goods provided to consumers.

The new fields report the calculation and split of the three new taxes being introduced (CBS; IBS; and selective tax). There will be a testing environment rolled out for the above from September 2025 ready for the launch of the new VAT regime on 1 January 2026.

Sept 2023: Progress to unify Brazil Nota Fiscal e-invoicing

The Brazilian government is proposing to harmonise the multitude of e-invoicing formats with  a National Statute for the Simplification of Additional Tax Obligations.

In addition to simplifying and digitalising many tax reporting requirement, the statue covers harmonisation of municipal, state and federal e-invoicing formats. Aside from efficiencies for businesses, this will enable the determination of the various indirect taxes and offering pre-filled VAT returns.

The statue will establish a new committee to review the current reporting and e-invoicing ecosystem, and how this can be consolidated.

Separately, Brazil VAT implementation plans are progressing.

Apr 2023 – Delay on mandatory NFS-e for small companies providing services until 1 September 2023

The mandatory adoption by small and unincorporated taxpayers of the Nota Fiscal de Serviós Eletrônica (NFS-e) for services has been delayed from 3 April to 1 September 2023. The e-invoice regime captures the amount paid, the service provider, and the service provider. A new national NFS-e standard service since last year, it is possible to issue an electronic invoice with information such as the customer’s CPF or CNPJ, the type of service provided and the amount of the operation.

Small businesses must adopt government Simples Nacional e-invoicing from 1 January 2023

Micro businesses using the consolidated tax Simples Nacional regime must use centralised portal (CGSN Resolution No. 169 of July 27, 2022). Simples Nacional enables a single reporting for a host of Brazilian taxes, including ISS; PIS; Cofins IPI and ICMS.

Brazil NF-e pioneer since 2005

Brazil’s e-invoicing regime, Nota Fiscal Eletrônica NF-e, is operated by SEFAZ, the tax authority for goods. It introduced the NF-e in 2005. There are two other main e-invoice types in Brazil: NFC-e for B2C; and NFS-e for services

You can keep up-to-date with VAT Calc’s global live VAT invoice transaction and e-invoice blog on country real-time reporting reforms.

There are three types of electronic fiscal documents now mandated for all businesses to record transactions between businesses:

• Goods: state-level Nota Fiscal Eletrônica NF-e
• Services: regional Nota Fiscal de Serviós Eletrônica (NFS-e)
• Transport services: Conheçimento de Trasporte Eletrônico (CT-e)
• Freigh: MDF-e, SPED and REINF
• Electricity supplies: NF3e

How to create Brazilian NF-e

For goods, with the federal-level NF-2:

The supplier must apply for a digital signature from their regional certified issuer. They are given an invoice generation key.

• The supplier first must generate an invoice in XML format with its unique digital signature
• This is then submit to the regional Secretaria da Fazenda Estadual – SEFAZ for validation and authorisation as a Nota Fiscal Electronica. It is given a unique authorisation code for inclusion in the XML file and ERP of the seller. The goods may now be dispatched.
• For movements of goods, a DANFE document is needed with the NF-e
• The customer is then issued with the invoice which they must approve to validate the complete invoice creation process.

The issuance of invoices for services is much more complicated as they are controlled by over 5,000 local taxing jurisdictions.

Central and South America e-invoicing