Brazilian VAT number contains 8 digits, a 4-digit radical, and 2 check digits (e.g., 0.123.4567/8901-23)
The standard VAT rate in Brazil is from 17-19%, depending on the state, with reduced rates from 4-12% for interstate movement of goods.
All businesses with Brazilian VAT number (domestic established companies) must submit periodic payments.
VAT Returns Frequency In Brazil
For all companies that operate in Brazil, VAT returns must be submitted monthly.
In the case of the late filing of VAT returns and payments, the Brazilian government prescribed the penalty from 1% to 150% of the tax due. The regular penalty is 75% of the tax due.
The main fields that must be filled in the NFe are:
As one of the strongest countries globally and the strongest in LATAM, Brazil introduced mandatory e-invoicing and mandatory electronic document transmission.
At this moment, there are three (3) electronic documents that are mandatory in Brazil:
As already mentioned, the essential e-invoicing document in B2C relationships is NF (Nota Fiscal).
According to the mandatory electronic invoicing model, Brazilian Tax Authorities (SEFAZ) must validate an invoice before a supplier sends it to a customer. There is an overview of the real-time reporting process and how does it work:
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