Regulatory updates - Brazil

The NF3-e is a fiscal e-invoice for the supply of electricity that must be issued by the distributors of electricity. Ajuste Sinief 1/2019 which instituted the Electric Energy e-Invoice and the Auxiliary Document of the Electric Energy e-Invoice, has now been amended by Ajuste Sinief 7/2023. This amendment postpones the mandatory issuance of NF3-e in São Paulo. Deadlines for other states remain unchanged.

In addition to the postponement, the adjustment also prohibits the bookkeeping of NF3-e which only contains items without the indication of the Tax Situation Code (CST).

These changes took effect on the date of its publication in the Official Gazette (DOU - Diário Oficial da União) on 19 April 2023.

As previously reported by Pagero, Brazil is in the process of implementing a national standard for electronic service invoices (NFS-e). On 31 March 2023, the Simples Nacional Management Committee (CGSN) decided to delay the entry into force of the mandatory issue of the NFS-e by the MEI, provided for in Article 3 of Resolution No. 169/2022. The CGSN also approved Resolution No. 172/2023, which updates tax transaction provisions, in accordance with articles 141-E to 141-G, of CGSN Resolution No. 140/2018.

Taxpayers opting for Simples Nacional may use the tax transaction institute to settle their debts with the public treasury, using precatory or credit rights recognized by a final court judgment to amortize the principal debt, interest and fine, in relation to the entity debtor's own credits. Transacting tax administrative litigation debts will also be possible at the federal, state, municipal, and district estates.

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