Running a company is challenging because it spans a range of different departments and processes.
Tax management, for example, is conducted according to a set of standards, rules, and best practices that are essential for the organization to remain compliant with tax authorities.
Among the department's activities, issuing invoices is one of the main ones. And since there is a set of 13 invoice types, issuing them can be more challenging than you might imagine.
To simplify the whole process, in this article we present the definitions of the five invoice types most used by companies. And as a bonus, valuable tips to optimize issuance.
Happy reading!
Electronic Invoice (NF-e)
This is the digital version of the traditional document. Issued and stored electronically, it is ideal for recording the sale of physical products, with ICMS (tax on the circulation of goods and services) and IPI (tax on industrialized products) applied.
The NF-e is generally issued by legal entities through the State Departments of Finance. When issuing the invoice to the customer, the company must send an Auxiliary Invoice Document (DANFE) along with the product. Together, the documents confirm the sale.
Electronic Service Invoice (NFS-e)
As a rule, this document is used mainly by small and midsize companies to confirm the provision of services from one organization to another or to an individual.
In practice, this type of invoice must be issued through the city government where the service provider is registered.
This document is known for being more flexible, since it only requires a municipal registration for issuance. The NFS-e generates the DANFSE (Auxiliary Document of the Electronic Service Invoice).
In practice, the model is used by a variety of companies that work with:
- Subscription services, such as SaaS or streaming platforms;
- Info products, such as e-books, online courses, and more;
- Educational and wellness services, such as daycare centers, hotels, spas, gyms, and many others.
Electronic Transport Document (CT-e)
This is the invoice model that replaced the manual version used until 2012. With the CT-e, a digital XML file is issued describing cargo transport services between states or municipalities, with taxation calculated under ICMS.
This type of invoice is validated through a digital signature and authorization from the State Department of Finance.
In practice, this invoice type brought a series of benefits to companies:
- Faster invoice processing;
- Lower freight and transport costs;
- Fewer discrepancies between the document and the goods transported.
As a result, this invoice type brings more organization and also helps prevent duplicate payments and eliminate paper bills.
Electronic Consumer Invoice (NFC-e)
As the name suggests, this document is intended for the end consumer and was created to replace paper receipts and the model 2 invoice.
The NFC-e is issued without paper and transmitted directly to the State Department of Finance, streamlining oversight.
Tied to retail and commerce, this invoice is generated at pharmacies, supermarkets, restaurants, retail stores, and other small and midsize businesses.
Electronic Standalone Invoice (NFA-e)
Those who do not pay ICMS and are not required to issue NF-e can opt for this type of invoice. Individual microentrepreneurs (MEI) and micro and small companies generally use the NFA-e.
It is worth noting that issuance rules vary according to each state's guidelines. In addition, you need to register online on the Sefaz portal to receive authorization and then generate this type of invoice.
Invoices: 5 tips to optimize the process
Now that you know the main types of invoices, the question is: how do you issue these documents in compliance with legal requirements?
We have prepared a checklist to help you. Check the points that deserve attention:
- Understand which type of invoice you need to issue;
- Keep the company's current tax regime in mind;
- Confirm that the customer's CNPJ/CPF is valid, and check other registration data, such as registration number and address;
- Double-check product codes, inventory, expiration dates, serial numbers, and other important data;
- Check whether there is freight, the number of packages, weight, cubage, and how it will be shipped.
Finally, issue the invoice and make sure your company stores the document and the customer receives a copy.
Simplify invoice issuance with Useall
As we have seen so far, this is just one of a company's many management processes. And there are many details to watch in order to stay compliant with tax authorities.
The good news is that technology can help optimize this and other tasks. Get to know the Useall ERP and how it can automate the invoice issuance process. Check out our success stories!
Originally published in Portuguese at useall.com.br.