NF-e System
Today we're covering everything about the Electronic Invoice document. Learn how it was created, its legislation, its advantages, and much more; follow along:
Definition
The Electronic Invoice (NF-e) is a tax document that only exists digitally.
It's issued to document — following the applicable tax principles and rules — a transaction involving the movement of goods or the provision of services between parties.
Its legal validity is guaranteed by the sender's digital signature and by the "authorization of use" issued by the tax authority (before the taxable event occurs).
History
The NF-e came out of a partnership between ENCAT (National Meeting of State Tax Administrators and Coordinators) and the Federal Revenue Service.
The Electronic Invoice's pilot project phase started in 2005, involving the treasury departments of 6 states and several large companies.
It emerged as an idea to integrate tax systems across the states of the federation, aiming for standardization and better data-transmission quality; lower costs and operational workload for service; greater effectiveness in oversight; more coordinated and integrated tax actions; better exchange of tax information across government levels; and large-scale cross-checking of standardized data with unified procedures.
The NFe follows the rules defined in the SEFAZ project, and its legal validity is guaranteed by the issuer's digital signature and receipt by the tax authority.
Legislation in effect
This tax document has been valid nationwide since 2005 (in October, with the approval of Ajuste SINIEF 07/05, which nationally established the Electronic Invoice and its Auxiliary Document — DANFE)
Adjustments
- Ajuste SINIEF 07/05 e alteraçõesFrom 10/05/2005, nationally established the Electronic Invoice (NF-e) and its Auxiliary Document (DANFE).
COTEPE Acts
- Ato COTEPE 33/08 e alteraçõesFrom 09/26/2008, addresses the deadline for canceling and transmitting an NF-e issued under contingency, after the technical issues that caused the contingency mode are resolved.
- Ato COTEPE 14/09From 03/09/2009, revokes Ato COTEPE ICMS 34/08 and approves the Manual for Issuing NF-e in Contingency, consolidating all legislation on this issuance process.
- Ato COTEPE 49/09 e alteraçõesFrom 11/27/2009, revokes Ato COTEPE ICMS 39/09.
- Ato COTEPE ICMS 06/10 e alteraçõesFrom 03/11/2010, revokes Atos COTEPE ICMS 40/05 and 35/08 and covers technical specifications for security forms and related procedures, as set out in Convênio ICMS 96/09.
Agreements
- Convênio ICMS 110/08 e alterações (vigente apenas nos estados de MT e RR)From 09/26/2008, creates the Security Form for printing Auxiliary Documents of Electronic Tax Documents (NF-e and CT-e), offering an alternative to the traditional Security Form and increasing production/distribution capacity for these documents.
- Convênio ICMS 96/09 e alteraçõesFrom 12/11/2009, covers the manufacture, distribution, and acquisition of paper with security features for printing tax documents and NF-e auxiliary documents.
Protocols
- Protocolo de Cooperação ENAT 03/05From 08/27/2005, sets the terms and goals between the states and Brazil's Federal Revenue Service for rolling out the Electronic Invoice.
- Protocolo ICMS 10/07 e alteraçõesFrom 05/18/2007, covers the requirement to issue the NF-e.
- Protocolo ICMS 55/07 e alteraçõesFrom 09/28/2007, covers the rollout of Rio Grande do Sul's Sefaz Virtual.
- Protocolo ICMS 42/09 e alteraçõesFrom 07/03/2009, establishes the requirement to use the Electronic Invoice (NF-e) in place of the Nota Fiscal, model 1 or 1A, based on CNAE criteria and transactions with the recipients it specifies.
- Protocolo ICMS 93/10From 07/09/2010, covers the creation of the Electronic Tax Document Circulation System (SCD-e) and the exchange of information between states.
- Protocolo ICMS 153/10From 10/24/2010, makes Rio Grande do Sul's Sefaz Virtual application available for use by the São Paulo State Treasury Department.
Advantages of the Electronic Invoice
Everyone involved in the commercial transaction benefits from issuing the NF-e; let's take a look:
Benefits for sellers
- Printing costs drop considerably, since it's issued electronically. The model still includes printing a paper document called the Auxiliary Document of the Electronic Invoice (DANFE), which accompanies the goods in transit or helps look up the corresponding NF-e online. Even when printing still happens, it can be printed on plain A4 paper (not newsprint), usually a single copy;
- Lower costs for purchasing paper, for the same reasons above;
- In the past, tax documents had to be stored for a set period, taking up space at home or at the taxpayer's business. Now storage costs are reduced, covering not just the physical space needed to properly keep tax documents but also all the logistics needed to retrieve them.
- And there's Electronic Document Management: the NF-e is an electronic document that skips scanning a paper original, which optimizes organizing, storing, and managing electronic documents, making it easier to retrieve and exchange information;
- Simplification of ancillary obligations;
- Less time in transit for goods. The NF-e speeds up processes at tax checkpoints;
- Encourages the use of electronic platforms;
Benefits for recipient businesses
- Lower costs from eliminating manual data entry of invoices when receiving goods;
- Easier logistics thanks to advance knowledge of the NF-e information;
- Fewer bookkeeping errors from eliminating manual invoice data-entry mistakes;
- Electronic Document Management, as described in the previous item;
- Encourages electronic relationships
Benefits for Society
- Less paper consumption, with a positive environmental impact;
- Encourages e-commerce and the adoption of new technologies;
- Standardizes electronic relationships between businesses;
- Business and job opportunities in services related to the NF-e.
Benefits for tax authorities
- Greater reliability of the invoice;
- Improved tax-control procedures, with better information-sharing;
- Lower costs in the process of controlling invoices captured while inspecting goods in transit;
- Higher tax collection and less tax evasion;
- Electronic Document Management, for the same reasons listed under issuing-company benefits;
- Support for electronic platforms and for the Federal Revenue Service's and state treasury departments' electronic tax and accounting bookkeeping projects.
Paper tax documents the NF-e replaces
Under Brazil's current rules, the NF-e can only replace the so-called Nota Fiscal model 1 / 1A, generally used to document commercial transactions involving goods between businesses.
It can also be used in place of the Nota Fiscal de Produtor, model 4, under "Ajuste SINIEF 15/2010".
It doesn't replace other tax document models still in use, such as the Nota Fiscal a Consumidor (model 2) or the Cupom Fiscal.
Issuance requirement
The nationwide rollout schedule for its issuance applies to taxpayers listed under the following legal provisions:
- Protocolo ICMS 10/07 e suas alterações, for 2008 and 2009;
- Protocolo ICMS 42/09 e suas alterações, from 2010 onward.
- For other taxpayers, it remains voluntary and rolls out gradually.
- The requirement by economic activity (CNAE) applies to the establishments listed in the ICMS Protocols already mentioned above, which prohibits issuing the Nota Fiscal, model 1 or 1-A.
For taxpayers, regardless of their activity, the requirement applies to the following operations (Protocolo ICMS 42/09):
- Those directed to direct or indirect Public Administration, including public companies and mixed-economy companies, of any branch of the Federal, State, Federal District, or Municipal governments;
- Transactions with a recipient located in a different state than the issuer.
Attention!
Regardless of size, businesses engaged in one of the required economic activities must issue the NF-e. Likewise, businesses not yet required to may voluntarily choose to issue the NF-e.
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