Brazil Electronic Invoicing and Tax Reporting Requirements

Brazil Electronic Invoicing and Reporting
Requirements
INVOICEWARE INTERNATIONAL
Global Compliance - Simplified

INVOICEWARE INTERNATIONAL © 2016
Confidential
Why Leading Organizations Choose
Invoiceware International
Regional Latin America Platform
• One Platform, multiple countries – Brazil, Mexico,
Argentina, Chile, Ecuador, Uruguay, Peru & Colombia
Lower IT Costs - Today & In Future
• Eliminate SAP ERP Configuration & Support issues
• Enterprise end-to-end support in English, Portuguese,
and Spanish
• Fixed, Predictable Cost Today & Through Changes
Eliminate Operational Issues
• Increase employee productivity by 25% with a single
SAP monitor for end users
• Built-in business process automation to eliminate
manual data entry tasks and shut downs
Avoiding Audit Issues & Financial Penalties
• SAP ERP is the system of record, not 3rd parties
• Fiscal reporting and transactional compliance from a
single solution

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Tax Authorities Control an End To End Process
Government standardized XML linked to VAT Tax reporting = Real Time Audits
Supplier Registers XML
 Government XML Standard
 Only Legal document
 Registers VAT Tax Obligation
PDF Accompanies Truck
 Copy of Invoice OR
 Signed Shipping Document
depending on country
VAT Tax Linked to XML
 Buyer only able to take VAT tax
credits that are linked to
approval codes in supplier XML
 Errors or corrections are the
buyer’s issue to get fixed

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Solution Requirements
Simplify Complexity Today, Manage Change in the Future
Cash, Compliance & CostEfficiency & Stability
CFO
Objectives
How do I automate processes with
my customers and suppliers?
How do I streamline transparency of
reporting & cash flow?
Efficiency
 On-time delivery
 Lower Inbound Receiving costs
 Accurate tax reporting & IVA Credits
 Complete audit trails
Cost
 Employee productivity
 Cost and time of shutdowns
 Tax penalties, missed deductions
 Cost of closing books monthly
Flexibility
 Automated Contingency in place
 Process workflows
 Working capital optimization
 SAP as single system of record
IT Consolidation
Chief Information Officer
How do I provide value with fewer
systems and lower costs of upgrades?
 Effort build, integrate, and maintain
SAP & multiple country solutions
 Staff, Solutions, Infrastructure
 Annual upgrades & consulting
 Stable budgeting vs. fire drill projects
 Buffer SAP from change
VP Supply Chain

Confidential
Multiple Solutions
• Local country solutions
• Middleware interfaces
• SAP ERP updates
SAP not System of Record
• Data is changed in 3rd party
tools not in SAP ERP
Who Supports?
• Search & Rescue Missions
Who Maintains?
• Alignment with SAP ERP –
global regression testing?
• Ongoing knowledge of what
was done and what needs to
be done
IT – Traditional Approach is Costly
Multiple Solutions, Constant Upgrades
SAP
ERP
Middleware
Integrate the
System
Different
Solutions for
Each Country
CUSTOMER
IDOC1
2
3
4
5
Monitor #1 Monitor #2 Monitor #3-6
Who
Supports
Who
Supports
Who
Supports
6
7
8

ConfidentialConfidential
Supply Chain – Business Impact is Substantial
Mission Critical Timing & End User Productivity
Invoicing Can Shut Down Operations
Government approved documents are
needed to ship legally. Built in back up
processes ensure you can always ship.
 Level 1 - On Network Contingency
 Level 2 – On Premise Contingency
 Automatic Reconciliation to get
invoice registered when systems
back on line
Standardization can drive down costs
Use XML Invoice and PDF on trucks to
lower cost in inbound receiving
 Automated Purchase Order – Invoice
matching before the truck arrives
 Eliminate data entry at warehouse
by scanning the PDF for data entry
 Manage discrepancies and trigger
government processes (return
orders, gov’t status messages)

IT – Financial Accuracy Equals Cash Flow
VAT Remittances & Working Capital Issues
Working Capital Optimization
• Accurate invoicing equates to lower DSO & less returns
• VAT tax obligations & deductions equal millions for multinationals
• Transform mandated compliance into Supply Chain Financing opportunities
Financial Reporting Accuracy - VAT
 VAT obligations in Latin America – 16-22% of goods sold
 Brazil VAT – based on physical movement of goods which means can
owe even before you collect from your end customer
 VAT Credits/Deductions must be linked to supplier’s registered XML
Finance Penalties – Local and FCPA for US Public Companies
• Mexico - $3,000 per event (i.e. transaction) plus denial of deductions
• Brazil -75% to 150% of tax values - $50 Million dollar Chem business
fined $3 Million by SEFAZ for deduction issues (page 30 of 10K)
• Foreign Corrupt Practices Act – SEC fines CPG company 4.2 Million of
Mexico invoices issues; High Tech company FCPA issues approach $108
Million

Confidential
Business-to-Government Compliance Suite for SAP
Latin America Regional Platform
• Brazil, Mexico, Chile, Argentina, Peru, Ecuador,
Uruguay & Colombia
SAP System of Record
• SAP sole system of record
• Single user interface inside SAP
Process Automation
• Automated Contingency – always be able to ship
• Lower Inbound Receiving & AP Costs
• Transactions & Reports are fully integrated
• Working Capital Optimization solutions
End to End Support
• End to End support in Portuguese, Spanish and
English whether SAP issue or gov’t issues
Fixed Fee - Change Management
• All maintenance is covered by fixed cost annual
fee (software & labor included)

Confidential
SAP ERP
Expertise
Local Country
Compliance
The Business Impact – IT Costs
Do you Have the Right Resources?
Invoiceware Resource Knowledge
 Functional SAP ERP experts in each
country in Latin America AND
 Experts in Local Country compliance
Invoiceware Resource Language
 English with global support AND
 Portuguese & Spanish in local time
zones
Invoiceware Economies of Scale
 Our only focus in Latin America
compliance AND
 Learn and apply from over 200 SAP
enterprise customers – common
logistics issues, billing issues, cost
savings

Reports Consistency
Operational NFe (Real-Time) Accounting/Fiscal (Monthly/Year-end)
Consistency

Invoiceware SAP Extensions for Sending
Transmits Invoices, Visualizes DANFE, Cancellations, Contingency Alternatives
Integrated Archive
Access
Error Correction &
Reprocessing
Automatic Contingency
(both On-Network and On-Premise)
Signing Attributes
(“Full Loop”)
Audit Trail,
Status Log
Event Based
CCE & Cancellations

Confidential
Why Leading Organizations Choose
Regional Latin America Platform
• One Platform, multiple countries – Brazil, Mexico,
Argentina, Chile, Ecuador, et al…
SAP Hybrid Cloud Deployment
• Eliminate SAP ERP Configuration & Support issues
• Single SAP Monitor for End Users
• Fixed, Predictable Cost Today & Through Changes
Production Support
• Invoiceware a phone call away for day to day calls
• English, Spanish or Portuguese
• End to End Support – including SAP issues
Change Management
• Ongoing Changes Included (including both software &
consulting)
• Local teams work with the governments (i.e. SEFAZ, SAT, AFIP, SII)
• Remove dependency on Internal Resources & SAP to
keep system updated

Resources
Click the links below for more information
 Learn more about the requirements in Brazil
 Brazil 2016 SPED Requirements: Block K Adds Complex Inventory
and Production Reports
 Upgrading Brazil Nota Fiscal 2015: Is your business at risk?
Want to stay up to date on compliance in Latin America?
Subscribe to our blog today.

Next Steps
Contact Us To Learn More
+ 1800 – 988 – 0728
www.invoicewareint.com

Brazil Electronic Invoicing and Tax Reporting Requirements

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