Source: Maxpress, 26/03/2008

As of April 1, the liquid fuel and tobacco sectors will be required to adopt the electronic invoice (NFe). This will be the first and important step for this type of computerized registration to be used in the purchase and sale of products in Brazil.

The NFe is a virtual document issued by States via the internet, in transactions between companies, and digitally signed, which guarantees its authenticity. In addition to dramatically reducing costs for companies, modernizing management and reducing bureaucracy and bookkeeping errors, NFe allows tax authorities to combat tax evasion and reduce unfair competition.

All States have already signed the ICMS Protocol 10/07, which provides for the mandatory adoption of NFe, but in practice there are still some necessary improvements in the development of the system and its implementation. Recently, ETCO held a seminar with the objective of promoting the exchange of experiences on the use of NFe, as well as debating what facilitates and hinders its implementation process. The content of the event is available to the public interested in the website www.etc.org.br.

Electronic invoices are considered by ETCO to be one of the most important mechanisms in the fight against tax evasion and a major step towards the modernization of tax administration. In addition to being an indispensable instrument in the search for a consensus on tax reform capable of meeting the demands and peculiarities of all States, it allows for control that opens the way for the simplification of the Brazilian tax system. With the electronic invoice, it is possible to identify how much each State gains or loses with changes in the collection of ICMS. According to the information generated, it will be possible to define a reliable compensatory system for States that may lose revenue.