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SAP Brazil Nota Fiscal - Service Invoices Are Treated Differently

former_member182834
Active Participant
‎09-04-2012 7:31 PM

Brazil Nota Fiscal legislation covers not only physical goods (NF-e), but the law also covers service invoices (NFS-e) and logistic invoices (CTe) making the implementation for global organizations even more complex.  The primary classifications include:


 




  • Nota Fiscal Eletronica  (NF-e) - The electronic signatures for the Nota Fiscal Eletronica (NF-e) were made mandatory starting in 2008 and all companies transitioned by 2010. This legislation required that every item leaving a bonded or non-bonded warehouse have a document that travels with the goods. The Nota Fiscal is a commercial reporting regulation used on all product transfers, from the seller to the buyer, for national or international products.

  • Brazil Electronic Invoice for Services (NFS-e) – is used for the confirmation of service invoices and can be very complex as there is not one entity to worry about, but over 120+ cities that can affect service invoices.

  • Brazil Transportation Document (CT-e) – is issued and stored electronically in order to document the provision of transport services, whose legal validity is guaranteed by the issuer's digital signature and authorization of use provided by the tax administration. Examples of use would be a Waybill (model 10) or an Invoice for Transportation Service (model 7 when transporting cargo).


It is important to note, that all 3 types of invoices are mandatory.  As discussed in previous blogs, the Transportation Invoice is the most recent addition to the mandatory validations.  However, I did want to cover the most significant differences between Physical Goods and Services:Service Oriented NFS

  • Tax is assessed by Cities, so Integration Points are at City Level

  • Can have many line items, but only one type of service per NFS.

  • Can deliver services first and then invoice later.

  • NFS number and Return Code provided by the City

  • City calculates the tax for you – you make FI adjustments if needed.

  • City sends the RPS report to Customer.  Customer pays Company, Company pays city according to their calculation of the tax.

  • City does the validation, buyer doesn’t have to worry about anything, except withholding, if applicable

  • Cancellations allowed within 30 days or 5 days after start of new month, whichever is earlier

  • Archive for 5 years by the city


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