Electronic Invoice (NF-e) in Recife
Do you know what it is? We put together several pieces of information in this post about this important tax document, its history, legislation, and its advantages!
What is an Invoice?
This is a tax document used to record a commercial transaction — purchase, sale, or services rendered. It also covers the collection of taxes.
It can also be used to record donations, product shipping, and loans.
What is the definition of the Electronic Invoice?
As mentioned in the previous item, the Electronic Invoice (NF-e) is the same document, recording purchase, sale, or service transactions, but now issued and stored digitally.
Because it is issued electronically, this document carries a digital signature meant to certify the authenticity of the Electronic Invoice. This proof is issued the moment the NF-e is issued and is also sent for the knowledge of tax authorities.
How was this new model rolled out?
In December 2003, Constitutional Amendment 42 was enacted, stating in its Article 37, item XXII:
The tax administrations of the Union, the States, the Federal District, and the Municipalities — essential activities for the functioning of the State, carried out by career-specific civil servants — will have priority resources to carry out their activities and will act in an integrated manner, including sharing registries and tax information, as set out by law or agreement.
From then on, the agencies responsible for Tax Administration came together and held several meetings known as the National Meetings of Tax Administrators (ENAT).
ENAT's purpose was to pursue the integration of tax work, standardizing and improving the quality of information. It also focused on reducing costs without losing oversight effectiveness, through greater information exchange between levels of government (Federal, State, and Municipal).
What was the goal of introducing the Electronic Invoice (NF-e) in Recife?
Its scope was to establish a digital tax document replacing the previous paper-only model. It continues to cover goods transactions and service provision in a simplified, agile way, reducing tax evasion through real-time oversight by tax authorities.
Were there any gains from introducing this new model?
As you can see below, establishing the Electronic Invoice in Recife brought several gains, advantages, and benefits extending to buyers and sellers, tax authorities, and society. They are:
Gains for buyers and sellers:
- Reduced or eliminated need for manual data entry with the Electronic Invoice;
- Fewer resources needed thanks to advance planning (prior knowledge of the NF-e);
- Lower costs related to paper (printing, storage, filing, and shipping costs);
Benefits for tax authorities:
- Making the invoice issuance process digital brought gains to tax processes through easier information exchange and standardization;
- Reduced tax evasion and increased tax collection;
- Greater trust in invoices issued;
Advantages for society:
- This market niche encouraged e-commerce (the emergence of new businesses) and jobs in various fields related to the Electronic Invoice;
- Lower paper consumption had a direct positive impact on the environment and on people's quality of life;
What is the legislation on the Electronic Invoice (NF-e) in Recife?
State legislation:
Decree 31.612 of April 3, 2008: Introduces changes to the State's Consolidated Tax Legislation regarding the Electronic Invoice - NF-e and the Auxiliary Document of the Electronic Invoice - DANFE
Federal legislation:
The Electronic Invoice was established starting in October 2005, per:
- SINIEF Adjustment 07/2005 (and amendments): nationally established the Electronic Invoice - NFe and the Auxiliary Document of the Electronic Invoice - DANFE;
- ICMS Protocol 10/2007 (and amendments): sets out the requirement to issue Electronic Invoices;
- ICMS Protocol 42/2009: the requirement applies to all transactions carried out at all establishments of the taxpayers referred to in this clause located in the Federation units that are signatories to this protocol, and it is forbidden to issue an Invoice, model 1 or 1-A, except in the cases provided for in this protocol;
- COTEPE Act 22/2008: sets out the technical specifications of the Electronic Invoice (NF-e), and contains the Taxpayer Guidance Manual;
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