Brazilian-Specific Terminology

Transcription

1 Brazilian-Specific Terminology

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3 ContentsBrazilian-Specific Terminology... 1 Filial (English: Branch)... 4 Boleto... 4 Duplicata... 4 CFOP... 4 CFOP Determination... 4 CIAP... 4 CNPJ... 5 Conhecimento de Transporte (CT)... 5 Conhecimento de Transporte Eletrônico (CTe)... 5 COFINS... 5 CPF... 5 DACTE... 5 DANFE... 6 DDA... 6 ICMS... 6 Complemento de ICMS... 6 Electronic Correction Letter (CC-e)... 6 IE... 6 IM... 7 INSS... 7 IPI... 7 IRRF... 7 ISS... 7 ISSF... 7 Modelo... 7 NBM Code... 8 NCM Code... 8 Nota Fiscal... 8 Nota Fiscal eletrônica (NF-e)... 8 Nota Fiscal de Serviços Eletrônica (NFS-e)... 8 PIS/Pasep... 8 SPED... 8 SPED ECD... 9 SPED EFD... 9 SPED PIS/COFINS... 9 Substituição Tributária... 9 Suframa... 9 Vendor operation... 9

4 Filial (English: Branch) Filial (in English branch) is the organizational unit where tax reporting and Nota Fiscal reporting is done. Nota Fiscais are issued per branch. Each branch has its own CNPJ number and its own address. In the organizational hierarchy, the branch is located between company and plant, that is, several branches may be assigned to one company code. Theoretically, several plants may be assigned to one branch; however, in reality each plant is assigned to exactly one branch. Boleto A payment form very common in Brazil. Vendors send Boletos (bank payment slip) to their customers attached to the invoice or in electronic format (DDA). The Boleto contains the item due and all other information required for the payment. Customers receive Boletos and pay them at their bank. The bank sends the payment to the vendor's designated house bank. It is not required to have a bank account to pay via Boleto and for this reason Boletos are very common in payments among private persons. Duplicata A payment method used in Brazil to collect payments from customers, like a trade note. The vendor creates a DME file and sends it to his house bank. The bank follows the instructions to create the payment and sends Boletos to the customers. Alternatively, the vendor creates and sends Boletos. This payment method is called Boleto Duplicata. CFOP CFOP stands for Código Fiscal de Operações e de Prestações (in Portuguese) and it is a code defined by the Brazilian authorities to describe the type of a business transaction. The CFOP code has to be printed in all Notas Fiscais and it is included in the legal reporting and in fiscal books. It contains information about the origin of the goods as well as the type of operation (sales, returns, stock transfers, sales of communication or transportation services, exports). CFOP Determination The determination of the CFOP code is done according to factors like direction of the movement (ingoing, outgoing), type of destination (same state, different state, different country), type of material (material, electric power, communication, transportation), usage of the material (resale, further processing; consumption; asset, Substituição Tributária), among others. If the CFOP determination table contains the necessary entries, the system determines the CFOP automatically. CIAP CIAP stands for Controle de Crédito de ICMS do Ativo Permanente (in Portuguese) and controls of the ICMS credit on assets. The CIAP law states that the ICMS tax amount paid on the acquisition of assets used in production processes can be claimed back from the tax authority. However, this tax credit must be split over a period of 48 months. The same law states that, if the asset is sold within 48 months from its acquisition, the remaining tax amount cannot be credited anymore but it has to be written off immediately. In case this asset is transferred, the remaining balance is also transferred to the other branch and it must be informed in the nota fiscal.

5 CNPJ CNPJ stands for Cadastro Nacional da Pessoa Jurídica (in Portuguese). The CNPJ number is a tax number assigned in Brazil to legal persons by the federal tax authorities. The CNPJ number consists of 14 digits, which refer to the company registration number (8 digits), the business place (4 digits) and check digits ( last 2 digits). The CNPJ number has to be entered in the customer/vendor master record if the customer/vendor is a legal entity. You also need to enter it in the company master data. In the past, the CGC number was used instead of the CNPJ number. Conhecimento de Transporte (CT) A Brazilian freight invoice issued by the logistic service provider (LSP)/carrier that must accompany the goods. It is similar to Nota Fiscal but it is used for freight instead of goods. The LSP/carrier uses CT to make accounts about their revenues and also for billing their customers. There are five types of CT, which correspond to different models (modelos): Conhecimento de Transporte de Carga (CTRC) - Road Cargo Transport Invoice (model 8); Conhecimento de Transporte Aquaviário de Cargas - Waterway Cargo Transport Invoice (model 9); Conhecimento Aéreo - Airway Transport Invoice (model 10); Conhecimento de Transporte Ferroviário de Cargas - Railway Cargo Transport Invoice (model 11); Conhecimento de Transporte Multimodal de Cargas (CTMC) Multimodal Cargo Transport (model 26) Conhecimento de Transporte Eletrônico (CTe) A project created by the federal tax authorities with the intention of migrating all freight service invoices, currently on paper, to electronic way using the same working model as for NF-e. The CT-e issuer (LSP/Carrier) generates an electronic XML file containing the transport service fiscal information, which must be digitally signed in order to ensure the integrity of the data and the authorship of the sender. This file is sent via Internet to SEFAZ Web Services, which, in turn, pre-validates the file and returns its authorization. Without this authorization the CT-e issuer cannot provide the transport service. COFINS COFINS stands for Contribuição para o Financiamento da Seguridade Social (in Portuguese:) and it is a social security contribution. It is a federal tax based on gross revenues of business sales. COFINS can be determined as cumulative (montly gross sales revenue) and non cumulative (montly sales revenue). In the Utilities invoice (IS-U), COFINS is part of energy price, and it is paid by the customer. CPF CPF code stands for Código de Pessoa Física (in Portuguese) and it is the taxpayer s identification for natural persons. It has to be entered in the customer/vendor master record if a customer/vendor is a natural person. DACTE DACTE stands for Documento Auxiliar do Conhecimento Eletrônico (in Portuguese) and it is an auxiliary paper document, similar to DANFE, that contains the CT-e access key, the protocol number, freight information, and also the bar code to facilitate the CT-e query on the SEFAZ website. The DACTE is no fiscal document as it is only an auxiliary instrument to accompany the transportation of goods and to facilitate the CT-e query through the access key. Once a CT-e is authorized, the DACTE can be printed on A4 size paper. It must accompany the transportation of goods in all its way.

6 DANFE DANFE stands for Documento Auxiliar da Nota Fiscal Eletrônica (in Portuguese) and it is an auxiliary paper document, that contains some of the electronic file (XML) contents, as the NF-e access key, the protocol number, business transaction information (commercial, logistics, taxes, etc), and also the bar coded access key to facilitate the NF-e query and verification in SEFAZ website. The DANFE is no fiscal document, as it is only an auxiliary instrument for the business processes specially to facilitate the manual tasks in the logistics processing, goods receive acknowledgement, access key verification, etc. Once a NF-e is authorized by the tax authorities, the DANFE can be printed on A4 size paper. If the transaction entails an actual physical goods movement, the DANFE must accompany the transportation of the goods. DDA DDA stands for Direct Debit Authorization and it is a payment method based on electronic billing payments, where paper Boletos are replaced by electronic Boletos. All payments are done through the Interbank Chamber of Payments (CIP). The seller company sends electronic payment slips to the CIP and, if the buyer s bank is registered at the CIP, the CIP forwards the payment slips to that bank. All payments done with this method go through the CIP. ICMS ICMS stands for Imposto sobre Circulação de Mercadorias e Serviços (in Portuguese) and it is the Brazilian state tax on the circulation of goods and services. Influencing factors on the ICMS rate are: the state of origin and state of destination of the goods, if the customer is exempted or not to ICMS, the usage of the goods (consumption or production), and the type of material. The ICMS is a percentage included tax, that it, this tax is included in the price. Complemento de ICMS A special form of ICMS which is due if a company buys a product from another state of Brazil and if the product is used for consumption. The ICMS complement is calculated as the difference between the ICMS rate charged by the vendor s state and the ICMS rate applicable within the customer s state. Electronic Correction Letter (CC-e) CC-e stands for Carta de Correção eletrônica (in Portuguese) and it is an NF-e event that informs the tax authorites and NF-e recipients about incorrect information contained in an NF-e which has already by authorized by tax authorities. The NF-e issuer is responsible for issuing a CC-e. IE IE stands for Inscrição Estadual (in Portuguese) and it is the state tax number. Each company subjected to ICMS tax has an IE registration number, which identifies the company at the state tax authority (Receita Estadual). Companies which are exempted from ICMS taxation, like e.g. banks and other service providers, have no IE.

7 IM IM stands for Inscrição Municipal (in Portuguese) and it is the municipal tax number. It identifies the company at the municipal tax register (Cadastro Tributário Municipal). Each company tha provides services needs an IM registration number, because in this case service taxes are levied on municipality level. INSS INSS stands for National Institue of Social Security (in Portuguese: Instituto Nacional do Seguro Social) and it is the Brazilian authority in charge of managing social services like paying pensions to retired persons. The contributions to the INSS are collected direct from salaries.the INSS social security tax is withheld together with the IRRF if the tax payer is a natural person. IPI IPI stands for Imposto sobre Produtos Industrializados (in Portuguese) and it is the federal tax on industrial goods ). IPI is charged per product and calculated on the basis of the value of the goods including ICMS. The due tax rate depends on the NCM code, which is a Brazilian classification of products, and the origin of the product (domestic/imported). Some companies are exempt from IPI, this is the case of governmentowned companies. Influencing factors on the IPI rate are: the type of operation (CFOP), product classification (NCM code), if the customer or vendor exempted or not form IPI, the usage of the goods (consumption or production). IRRF IRRF stands for Imposto de Renda Retido na Fonte (in Portuguese) and it is a federal tax on labor income, capital income, and services. IRRF is a withholding income tax. Assuming that a company buys a service from a private person, then the portion of income tax due on the value of the service has to be withheld by the customer. ISS ISS stands for Imposto sobre Serviços (in Portuguese) and it is the city tax on services. This tax is levied on municipality level and the tax calculation depends on: The tax-relevant location: either where the service provider is located or where the service is provided. Who levies the tax: this is normally the service provider, but in some cases the service tax has to be withheld by the service recipient. The tax rate for ISS depends on region and type of service. ISSF ISSF stands for Imposto Sobre Serviços na Fonte (in Portuguese) and it is the withholding tax on services. If the ISS tax is withheld, it is referred to as ISSF. Modelo A legal book like a register that is required by the Brazilian tax authorities and that contains a list of financial operations related to Notas Fiscais. Examples of modelos are paper-based reports like a list of incoming documents and vendor list (Modelo 1 and 10), list of outgoing documents (Modelo 2), overview of production and Inventory (Modelo 3).

8 NBM Code See NCM Code. NCM Code NCM stands for Nomenclatura Comun del Mercosur (in Spanish).and it is a classification of goods issued by the Brazilian government and used to determine the IPI tax rate. In the past, the NCM code was called NBM code, that is Código da Nomenclatura Brasileira de Mercadorias (Code of the Brazilian Nomenclature for Goods). Nota Fiscal A legal document used in Brazil. The Nota Fiscal has two primary functions: It is a document accompanying goods, comparable to a delivery note including tax information. It is the Brazilian invoice. Payments are made against Notas Fiscais. Therefore, the Nota Fiscal includes both delivery and invoice data and states that the taxes incurred due to an operation have been paid correctly. In processes that invoicing and shipping occur at different dates or inlcudes different customers/vendors, there will be one Nota Fiscal for shipping and another one for invoicing. One example of it is the future delivery sales: the customer receives first the Nota Fiscal Simples Faturamento (invoice) and later the goods accompanied by a document called Nota Fiscal Simples Remessa. Nota Fiscal eletrônica (NF-e) As of 2007, the Brazilian government introduced electronic notas fiscais (NF-e) to replace the conventional, hard-copy notas fiscais. The Nota Fiscal issuer (vendor) generates an electronic XML file containing all relevant fiscal information. This file is sent via Internet to SEFAZ Web Services, that pre-validates this file and returns its authorization. The vendor can only proceed with the sending of the goods to the customer after the NF-e has been authorized by SEFAZ and that the DANFE has been printed.. NF-e Event An action that is related to an electronic nota fiscal (NF-e). Such actions include authorization, denial, cancellation, for instance. SEFAZ defines the actions and the NF-e event authors and recipients. In Portuguese, this is known as evento. Nota Fiscal de Serviços Eletrônica (NFS-e) An electronic Nota Fiscal for services, which has to be created and authorized in a similar way as the NF-e. PIS/Pasep A contribution to the social integration (in Portuguese: Programas de Integração Social e de Formação do Patrimônio do Servidor Público). Pis/PASEP is federal tax and it applies on Gross revenues charged directly paid by the legal entity. PIS/Pasep as well as COFINS are treated as normal taxes. This means that Brazilian companies can claim back the PIS/Pasep paid on the acquisition of goods and products used in production processes. PIS/Pasep can also be treated as withholding tax and can be posted at the time of payment. In the Utilities invoice (IS- U), PIS/Pasep is part of energy price, and is paid by the customer. SPED

9 SPED stands for Sistema Público de Escrituração Digital (in Portuguese) and it is the Public System of Digital Bookeeping. It is a federal initiative of the Brazilian government to standardize and simplify the fiscal reporting and enhance the identification of illegal activities. One of the objectives of the SPED initiative is to replace paper-based reports by electronic ones. Additionally to the electronic reporting, other important projects of the SPED initiative can be named Nota Fiscal electronica (NF-e), Conhecimento de Transporte eletrônico (CT-e), Nota Fiscal eletrônica for services (NFS-e). SPED ECD ECD stands for Digital Accounting File (Escrituração Contábil Digital in Portuguese) and it is one of the projects within the SPED initiative. It is an electronic reporting that contains accounting information like G/L account balances, line items, and accounting statements. SPED EFD EFD stands for Digital Fiscal File (Escrituração Fiscal Digital in Portuguese) and it is one of the projects within the SPED initiative. It is an electronic reporting that contains fiscal relevant information based on the Notas Fiscais, like incoming and outgoing Notas Fiscais and tax information on IPI and ICMS taxes. SPED PIS/COFINS One of the projects within the SPED initiative and it is called in Portuguese EFD-Contribuições. It is an electronic reporting that contains relevant information on the PIS and COFINS contributions and the related tax consolidation. Substituição Tributária In Brazil, certain materials are subject to substituição tributária. This means that the fiscal authorities transfer the right to collect taxes to the producer or distributor of the goods, the so-called substituto tributário. He pays the taxes, including taxes on the presumed resale surcharge, and collects them from the reseller who buys the goods. When re-selling the goods, the buyer can charge the taxes on the surcharge to the original price. Suframa Suframa stands for Superintendence of the Manaus free zone (in Portuguese: Superintendência da Zona Franca de Manaus). It is an organization dependent on the Brazilian Ministry for Development, Industry and Commerce with the purpose of developing the Manaus area and promote sustainable economy. Companies taking part in such program get a Suframa registration number. Vendor operation An instrument used for financing the sales. The vendor sells the sales revenues to a bank receiving an interest in exchange. At the same time the vendor acts as guarantee for the sales, in case the customer doesn t pay. The customer pays the due amount plus the interest to the bank. This interest is higher than the one granted to the vendor.