ERP Software for Brazilian Businesses

The tax calculation on each NF-e is where the real complexity lives. ICMS (Imposto sobre Circulacao de Mercadorias e Servicos) is a state-level value-added tax with rates that vary by state, product, and whether the transaction is within a state or between states. Interstate transactions use differentiated rates based on origin and destination states, with DIFAL (Diferencial de Aliquota) applying when goods are sold to end consumers in other states. IPI (Imposto sobre Produtos Industrializados) is a federal excise tax on manufactured goods. PIS and COFINS are federal social contributions calculated on gross revenue. Each of these taxes has its own rules for credits, exemptions, and special regimes.

Brazil's 2026 tax reform introduces CBS (Contribuicao sobre Bens e Servicos) and IBS (Imposto sobre Bens e Servicos) as replacements for the current patchwork of consumption taxes. From January 2026, all electronic fiscal documents must use updated invoice layouts with new fields for CBS and IBS. Yukti supports the new layout requirements and provides a testing environment for the transition period.

Starting January 2026, NFC-e (Nota Fiscal do Consumidor Eletronica, the B2C fiscal receipt) can only be issued to individual consumers. Sales to companies must use the full NF-e format. Yukti automatically determines the correct document type based on the buyer's registration.

Service invoices (NFS-e) are issued through municipal systems, and Brazil has over 5,500 municipalities, each with potentially different requirements. Yukti integrates with the national NFS-e standard that is progressively unifying municipal service invoice formats. Payroll obligations include INSS (social security), FGTS (severance fund), and IRRF (income tax withholding), all of which Yukti calculates and reports through the eSocial digital bookkeeping system.