End of free issuer portal for NF-e and el CT-e

Brazil’s Ministry of Finance (Sefaz) has announced that from January 1, 2017 it will no longer carry out updates or maintenance in the free portal for issuers, which is used for issuing NF-e and CT-e. The aim is to gradually dismantle the service, as the vast majority of companies now use their own e-invoicing systems, which provide greater benefits in daily fiscal management, for example by automating the issuance of tax documents.

A survey conducted by the Department of Finance confirms that, despite the investments carried out in the free issuer portal, today 92,2% of companies manage their NF-e invoicing through solutions from Electronic Billing Software providers. In the case of the CT-e, the waybill will also be affected by this measure, as the percentage is even higher, at around 96,3%.

The free portal for issuers has been up and running since 2006, when the process of digitizing tax documents and their transmission through the network began. With this service, the Treasury Department intended to facilitate the technological leap for small taxpayers with difficulties in adopting a proprietary solution. However, with the passing of time, the NF-e and the CT-e have become fully established in Brazilian society, to the extent of making it one of the main countries leading the digital evolution in tax affairs worldwide. Now, issuers can find third-party solutions on the market which they can adapt to their technological and economic needs.

 

Who is affected by the measure?

The low percentage of taxpayers still using the free issuer portal mainly corresponds to small businesses. Nevertheless, there is also a group of large companies still occasionally using the system. This is due to the different types of NF-e in existence, as many of these businesses normally use their own solutions, but turn to this portal to generate their NF-e for exports or for asset transfers, among other purposes.

In any case, small and large businesses will have to stop using the portal soon. The Department of Finance recommends that users start seeking alternative solutions developed by specialist service providers so that they can manage their NF-e and CT-e properly in the future.

 

How to choose a market solution?

The end of the free issuer portal means an opportunity for company to migrate to more advanced solutions, like EDICOM’s, able to automate all processes. When it comes to choosing among all the suppliers in the market, it is important to take into account three main factors:

  • The solution must adapt to each company’s particular needs at the moment of signing as well as future needs for commercial expansion, either with other trading partners, sectors or regions. To this end, it is recommendable to choose a software that runs on a cloud-based technological infrastructure which allows scalability and growth for the company’s fiscal digitalization project.
  • It is important to check the supplier’s experience, their working methodology and support service. One guarantee is if they have a signed SLA in which they undertake to maintain certain conditions.
  • The new technology platform must be integrated with the company’s in-house system, so that it is possible to automate transactions without modifying internal working procedures. In addition, the solution should also be ready to handle all types of electronic tax documents, not only in Brazil, but also in other places around the world, something which is crucial for multinationals.

The solution for issuing NF-e and CT-e developed by EDICOM meets all these requirements and guarantees service availability of 99.9%. Thanks to it, thousands of companies worldwide have optimized their affairs, boosting productivity and slashing economic costs.

 

Latin America is at the Forefront of Electronic Invoicing

Billentis published a report on e-invoicing/e-billing titled, “Entering a New Era,” which states that in 2015, approximately 42 billion electronic invoices will be processed around the globe. Latin America will process 25 billion of these electronic invoices, which is more than half of the e-invoices being processed worldwide. These facts confirm that Latin America is a global leader in paperless invoicing initiatives.

In Latin America, Chile is the birthplace of the electronic invoice. Taxpayers who live there have the option of choosing whether or not they want to use electronic invoicing since exempt resolution number 45 was passed in 2003. However in 2014, the internal revenue service began to take steps to establish a timeline for adopting obligatory e-invoicing, which will end in 2018. Chile wants to establish an e-invoicing regulation similar to the ones implemented in Mexico and Brazil, which has made them the two most developed countries in electronic invoicing at an international level.

Brazil has managed to expand e-invoicing by 90% in the B2B and B2G sectors. According to Billentis’ report, Brazil exchanges almost 1 trillion digital documents every month. The state treasury’s challenge is to take this technology a step further by requiring companies to identify end consumer transactions with a specific type of electronic fiscal note, also known as a fiscal note for end consumers.

The e-invoice has also been expanding rapidly in Mexico due to e-invoicing implementations that have been taking place since 2004. Since electronic invoicing already extends to areas such as payroll or electronic accounting, it’s been estimated that the country processed 5 trillion electronic invoices in 2014.

In 2015, Argentina is expected to experience high growth as well. The tax administration recently added hundreds of thousands of taxpayers to the expansion program and has also announced plans to continue expansion throughout 2016. Also, Uruguay will play a leading role this year. Its tax administration hopes the growth of this system will reach 40%.

Other countries such as Peru, Costa Rica and Colombia that already use electronic invoicing are on the verge of making even greater progress soon. In the near future, Colombia is expected to approve an expansion regulation that would require certain businesses to migrate to the new system in 2016 while others will be added as time goes on.

 

 

NFS-e in Porto Alegre

nfse

Mandatory status

As of April 6, 2015, service providers registered with any of the CNAE codes listed in annexes II, III and IV of these informative instructions are required to issue the Electronic Tax Document Nota Fiscal Electrónica (NFS-e), if their annual income from the provision of services subject to the Tax on Services of Any Nature – “Imposto sobre Serviços de Qualquer Natureza” – ISSQN” in this municipality or elsewhere, is equal to or greater than R $240,000.00 (two hundred and forty thousand Brazilian Reals), in the financial year corresponding to the calendar year immediately preceding the year of service provision.

The following are excluded from this obligation:

I – Service providers whose activities are addressed in the ISSQN tax collection regime by estimates;

II – Financial or similar institutions authorized to operate under the regulations of the Brazilian Central Bank – Banco Central do Brasil;

III – Operators of public telephone services, electricity supplies, water and sewerage and collective passenger transport, including taxis;

Adhesion and Obligation

Transitional and optionally, service providers are authorized to issue NFS-e according to the following schedule:

As of 5th January, 2015, for service providers registered with any of the CNAE codes, related with the sub-section on provision of services from the List of Services annexed to LCM nº 07/73, consisting of Annex II;

As of 1st February, 2015, for service providers registered with any of the CNAE codes, related with the sub-section on provision of services from the List of Services annexed to LCM nº 07/73, consisting of Annex III;

As of 1st March 2015, for service providers registered with any of the CNAE codes, related with the sub-section on provision of services from the List of Services annexed to LCM nº 07/73, consisting of Annex IV;

Latin America at the forefront of electronic invoicing

Factura electrónica en Latam

Electronic invoicing is currently in full expansion worldwide. According to Billentis, this year roughly 40 billion invoices will be exchanged in this format. Of these, more than half, about 25 billion, correspond to Latin America. This region has already become the most advanced in the field in the international scope, due to the fiscal policies carried out by the governments of the various states.

Mexico is positioned as the front runner. This year the country celebrated the tenth anniversary of the Digital Tax Receipt via Internet with a high degree of penetration. Since 2014, the so-called CFDI is mandatory for almost all taxpayers. Now, the Tax Administration Service continues to develop policies designed to cut down the number of administrative procedures on paper. For example, new measures to encourage electronic accounting, or the new e-document for tax withholdings and payment information.

Along with Mexico, Brazil has one of the highest rates of uptake. According to Billentis, in this case the figure is around 90 %. This is due to strict legislation rolled out some years ago, which requires a large number of taxpayers to use the digital document known as Nota Fiscal Electrónica (NF-e).

In Chile, adoption of this system is also widespread, although until recently the Electronic Tax Document was voluntary. It is estimated that more than half of all invoices are now generated electronically, and an ongoing high growth rate is expected due to the new policies. Last October, the country’s big businesses were required to sign up and the Internal Revenue Service expects migration to be completed by 2018.

In the group of e-invoicing early adopter countries, we must not forget Guatemala. There, since 2013, the FACe scheme is mandatory for all individuals or legal entities classified as special taxpayers.

This has also been a year of great breakthroughs for Uruguay, which is destined soon to become another of the leading countries in e-invoicing. D.G.I. Resolution Nº 798/2012 has prompted around a thousand large companies to start using the electronic invoice for tax purposes known as Comprobante Fiscal Electrónico. Currently, the General Directorate of Taxation plans to set out a schedule for adaptation that includes new groups of taxpayers. A similar measure was taken by Argentina with General Resolution 3571/2013, which led thousands of taxpayers to sign up to this system between April and August. Moreover, in recent months the Federal Administration of Public Revenue has decided to include new sectors in e-invoicing, such as the mining industry .

Ecuador has adopted a similar model to these countries and is currently immersed in the process of rolling out electronic invoicing. On 1 October, the first taxpayer group signed up and the rollout of electronic invoicing is expected to be completed in 2015.

In Peru, taxpayers have been able to present their bills electronically on a voluntary basis since 2010, although legislation is moving towards making it mandatory. This year, 239 of the country’s largest companies had to roll out the system and according to some newspapers, the National Superintendency of Customs and Tax Administration proposes that 100% of taxpayers should be using electronic billing by 2017. However, no legislative action has yet been taken in this sense.

Another new feature this year is the announcement by the Costa Rica Ministry of Finance of a new project for mandatory e-billing and e-signature. The new system, which still has no release date, will replace the setup rolled out in 2013 to ensure information processing.

Over the coming year, electronic invoicing is expected to keep on growing worldwide. The policies promoted in the Latin American states are already configured as a role model for many European and Asian countries, such as Vietnam.

 

International Electronic Invoicing Platform

Companies operate in a global environment with partners and customers from different countries and regions. It is indispensable to have e-invoicing solutions tailored to this market situation. EDICOM offers businesses an electronic invoicing platform with permanent monitoring of the state of the laws and regulations in the countries concerned. The result is an e-Invoicing solution ready to issue legally valid electronic invoices anywhere in the world, transparently for our clients, as the data used to build the files (CFDI, NFe, DTE, Facturae, Fattura PA…etc), are taken automatically from the company’s own ERP or accounting system.

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Paystream recommends EDICOM e-billing solutions

Paystream recommends EDICOM e-billing solutions

The advisory firm Paystream Advisors has issued a report on e-invoicing in Latin America primarily aimed at large international companies with expanding economic interests in the region.

The first part of the study, headed “A CFO’s Guide to E-invoicing in Latin America”, examines the main features of electronic invoicing in Brazil, Argentina, Chile and Mexico. It also recommends some solutions for starting up the system. Among them, those from EDICOM stand out for their international scope and constant updating.

Latin America is probably the most advanced region of the world in the rollout of electronic invoicing. In these countries, most governments have adopted strict legislation making the use of electronic billing systems an everyday activity spread throughout all scopes, from B2B and B2G, where the generation of electronic invoicing is mandatory for submission to the tax authorities, to its implementation in the B2C areas, as a mechanism that provides a certain degree of fiscal control over individual taxpayers. Electronic invoicing not only entails great cost savings, but is also proposed as a highly effective measure to combat tax evasion.

The rollout of electronic billing in these countries has been progressive, gradually incorporating a greater number of taxpayers over time. In Mexico, for example, the process has been going on for over a decade. The aim of this gradual implementation is that the adaptation should take place without great efforts. However, today multinationals who want to grow in Latin America should implement this system from the word go. A process which can be difficult, especially in countries like Brazil or Mexico, where electronic invoicing is particularly complicated. This is compounded by the fact that many of these businesses come from countries like the United States, where the tax system is completely different.

Companies in the process of expansion should also bear in mind that each State has different technical and legal requirements. In this sense, the guide drawn up by Paystream is very useful, because it approaches the constraints involving e-invoicing in each of these countries. The report also highlights the need to have an international platform like EDICOM’s, which allows users to work with a single solution in different States, regardless of the legal standards, language employed or time zones.

 

An all-round solution

EDICOM has carried out electronic billing and EDI projects in over 60 countries worldwide. Moreover, the International E-Invoicing Observatory, run by renowned experts in the field, makes it possible to constantly update the solutions, so that they are always adapted to the law in each country. These features have consolidated the company’s position as a front runner in the sector.