EDICOMand VERTEX, two of the leading vendors of digital billing solutions in Latin America, have reached a collaboration agreement for both companies to share their expertise. Their technology platforms guarantee global billing solutions for Central and South America.
VERTEX solutions simplify the tax calculations to be included in an invoice, whereas those from EDICOM ensure the issuance, delivery and receipt of electronic invoices in line with the legislation of the different countries.
BRAZIL AND LATIN AMERICA: STRATEGIC REGIONS FOR U.S. BUSINESSES
U.S. companies have close trade relations with the Latin American markets. One of the most complex countries when it comes to doing business is Brazil, whose tax and fiscal system calls for no small effort from businesses, obliging them to update their IT systems to come into line with current billing legislation.
This complexity is based on two key obstacles:
High degree of complexity in tax calculation
The tax and customs administrations of each of the Brazilian states maintain a particular tax base of their own which applies to goods movements within the boundaries of each state, making it difficult to adopt a single rule for calculating the taxes to be applied in each invoice.
In the case of service provision things are even more complicated, as the tax system may differ depending on the Prefecture (municipal area) assigned to the service provider that has to issue the invoice.
Issuance of invoices in electronic format and online statement to Brazilian tax authorities
Brazilian tax authorities impose a compulsory electronic system to monitor and control operations involving the movement of goods and services. The system calls for the generation of an electronic document (XML) designated “Nota Fiscal” and its online declaration via web services for validation and authorization.
An invoice or “Nota Fiscal” not duly authorized by the Brazilian tax administrations has no validity and cannot be forwarded to the customer liable for payment.
EDICOM & VERTEX: COMPLEMENTARY SERVICE
VERTEX y EDICOM provides technological service platforms that enable US companies to surmount the 2 major barriers that any U.S. Company faces when rolling out billing systems for Brazil.
Vertex: International Tax Calculation Platform
Connecting the client’s IT system to the Vertex platform allows them to calculate the breakdown of taxes to apply on a given business transaction.
This relieves the invoice issuer of the need for detailed knowledge of a complex and changing tax system, which taxes commercial transactions on the basis of a range of criteria that it is difficult to keep updated.
This way, the Vertex platform user overcomes the problems arising from the complexity of tax calculations, thanks to a transparent solution that enables them to include the taxes associated with each trade transaction carried out in their accounting and bills.
This platform ensures the issuance of these documents in line with the standards defined in each case and their online statement to the competent tax authorities.
To this end, the platform implements complex data transformation processes to adapt the billing records residing in the client's ERP to the standard demanded by the tax authorities.
The EDICOM solution includes conducting communications with the different tax authorities to manage the approval processes laid down by legislation and enables sending of the definitive invoice using technologies such as EDI, or specific web solutions that speed up delivery to the end client.
To broaden your knowledge of e-Invoicing in Brazil, you can download our White paper.
Tax-processing technology industry leader, providing software and services for the management and calculation of the tax bases of each country, enhancing the efficiency and accuracy of tax administration processes and company accounting.