Brazil is the seventh largest economy in the world and the largest one in Latin America. For companies willing to expand to Brazil, it is important to learn too that Brazil is one of the countries that stands ahead in the roll-out of a new paperless billing system: electronic invoicing.
An electronic invoice, or “Nota Fiscal Eletrônica” (NF-e), is a document that is electronically sent and stored in order to document commercial transactions between buyers and sellers. In Brazil, it is mandatory for almost every enterprise, which must follow the specific requirements expected in this country.
NF-e, the Brazilian e-Invoice
In Brazil, every item that leaves a warehouse must be accompanied by an NF-e. This document is focused on fiscal goods, and must be embraced by basically any Brazilian company that sells products, both domestically and internationally. Electronic signature for NF-e was made mandatory on 2008, and by 2010 all companies had transitioned.
But how is NF-e different from any other electronic invoice? These documents are created following a precise XML format. They must also include an electronic signature, to guarantee their authenticity and integrity, and must be evaluated by the Secretaria de Fazenda, the Brazilian tax authority. In the last decades, mandatory e-invoicing has been an opportunity for businesses to improve thanks to quicker collection times and lower costs associated with document processing.
The NF-e route
In Brazil, there are several steps that must be taken in order to create an electronic invoice:
The sender generates an XML document that contains the information required for the emission of the Brazilian electronic invoice (NF-e). A digital certificate, which will guarantee the authenticity and integrity of the data, must be included.
The tax authority will make an initial evaluation in real time, and send the required authorization of use, without which it is impossible to transport goods.
The sender must print a DANF-e, a paper representation, which must be attached to the shipment. The Government can directly access into the validity of the shipment thanks to this.
The buyer must check in when receiving the goods and make an NF-e check with the tax authority.
For a newcomer, this may seem a long process, but it is actually nothing but a routine procedure. To face this challenge, some companies decide to count on a technological partner that can facilitate this process. This is why EDICOM’s NF-e solution offers total compliance with the defined norms and requirements of Brazilian invoicing, guarantees a complete integration with your ERP and is digitally linked with the Brazilian Tax Authority.