Compliance updates - Brazil

Brazil has a very high number of municipalities with different e-invoicing standards for each. This is one of the reasons why this country has one of the most complex CTC models in the world. Moreover, the tax that levies the consumption of services (ISSQN - Imposto Sobre Serviços de Qualquer Natureza) is and regulated by each of the municipalities, which makes it only harder to comply with a vast variety of requirements.

To facilitate e-invoicing compliance, the Brazilian Federal Revenue Agency (RFB) has signed an agreement with the National Confederation of municipalities (CNM) and some other relevant entities, in which they agreed to establish a National System of the NFS-e (SNNFS-e).

What is the SNNFS-e?

The SNNFS-e will allow the issuance of NFS-e in a national standard through the web portal, mobile app or API. The document format for issuance of the standard NFS-e is XML, and it must be digitally signed. The SNNFS-e also introduces a national repository system of all NFS-e generated, called National Data Environment (ADN).

The switch to the SNNFS will be voluntary for municipalities. The system will offer them several service modules to adopt, together with one mandatory module, the ADN.

Among the municipalities that have already signed the agreement, we can mention São Paulo, Salvador, and Florianópolis. The success of this national NFS-e standard relies on significant adoption by municipalities, so taxpayers must be ready to comply as this takes place across the country.

Start of the pilot

A pilot program started on 23 July 2022 with five municipalities being part of the roll-out of this new unified system. There are suggested implementation schedules, but further developments and announcements are expected in the upcoming months from the Brazilian Federal Revenue Agency.

Stay tuned with Pagero to be the first one to know about the latest e-invoicing developments in Brazil