In Brazil, electronic invoicing has been proving itself for 20 years

In Brazil, electronic invoicing was introduced gradually starting in 2006. Today, it is fully operational and has helped simplify administrative procedures and reduce tax fraud.

Thierry Ogier – Correspondent in Brazil

Jacky Caillier opened a charming little French restaurant in São Paulo a few years ago. And for him, there is no doubt:

electronic invoicing has simplified communication with the tax authorities. Less time is spent gathering the necessary information and meeting their requirements

While electronic invoicing will only become mandatory in France on September 1, 2026, in Brazil it was introduced 20 years ago, as early as 2006. It first concerned the purchase of goods and merchandise between businesses, and the following year, services and transportation.

Since 2013, most operations intended for the final consumer are processed via electronic invoice in each of the 27 states of the Brazilian federation, explains Vinicius Pimentel, from the Inter-American Center of Tax Administrations, an international NGO that provides specialized technical assistance for the modernization and strengthening of national tax administrations.

The success is undeniable, according to him. «The system is very stable. All companies use the same format, and this has gradually been extended to all sectors of the economy.» Rapid digitization, in a country often criticized for its bureaucratic heaviness, has made it possible to replace a system deemed archaic and to reduce «red tape.».

Accounting reliability and legal certainty

«It's pretty not bad,» considers Philippe Boutaud-Sanz, partner at the law firm Chenut.

Previously, physical documents [on paper, Editor's note] had to be stored and archived for five years and sometimes even sent by courier to clients. Now, the tax authorities immediately receive a copy of the invoice, and there is greater legal certainty. There is almost zero risk of the invoice being lost or modified, which could happen much more easily in the past.

Access to invoice history is also proving easier, an advantage for accountants, explains Yann Fromont, who came to establish the Breton accounting firm Gorioux in Brazil just over 20 years ago.

For us, having comprehensive electronic invoices represents a certain level of accounting reliability

explains Yann Fromont, who came to establish the Breton accounting firm Gorioux in Brazil a little over 20 years ago.

Thanks to the automatic import of XML-format invoices by software, companies are using electronic invoicing as a «productivity tool,» the accountant asserts.

Automated invoice processing has also become a tool for real-time tax auditing. «In a microsecond, the seller and the buyer have the information of the issued invoice, and so does the tax authority,» summarizes Yann Fromont. The reduction in tax fraud, which is difficult to quantify, is very real. «It is harder to stay off the grid since its implementation,» he believes.

At a forced march

However, companies had to invest and modernize their IT systems to implement electronic invoicing. «You have to adapt your invoicing software to the complexity of the Brazilian invoice,» explains Yann Fromont. "Anyone who doesn't configure their invoicing software is unable to sell. You have to structure yourself with IT system companies in order to comply with the Brazilian tax authorities... This involved a cost for compliance or software purchase, with the payment of increasingly expensive licenses."

At the scale of small businesses, like Jacky Caillier's restaurant, the cost does not seem insurmountable, however. For some time now, the restaurateur has been able to take advantage of a free system set up by the Public Service for Small Businesses (SEBRAE). «It works well,» he assures.

Ultimately, Brazil's pioneering experience proves to be largely positive.

Electronic invoicing is a powerful lever for transparency, debt collection, and economic modernization. I see only advantages in it.

Profile of Laurent Serafini, president of the risk management and business intelligence firm Velours International, established in Brazil for 15 years.

According to him, the State benefits because the systematic recording of sales has helped reduce fraud regarding reporting obligations. For businesses, the benefits are numerous: automation of approval processes, reduction in the volume of invoices to process, better visibility into supplier liquidity, and complete traceability of commercial flows. «Regarding our service business, it is very positive on both sides,» concludes Laurent Serafini.

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