A CFO’S GUIDE TO eINVOICING IN LATIN AMERICA

Part 1: Brazil, Chile, and Mexico - Glossary and Appendix

Brazil:

CTe – Transporation document that must accompany a shipment in Brazil if using a third-party logistics provider; (Conhecimento de Transporte)

DANFE – PDF representation of a Nota Fiscal that acts as a Brazilian bill of lading document; (Documento Auxiliar da Nota Fiscal Electrônica)

eSocial – Brazilian project to document and regulate Human Resource operations

MDFe – Physical copy of an electronic invoice that must accompany a shipment in Brazil if using one’s own logistics provider; (Manifesto Eletrônico de Documentos)

Nota Fiscal Eletrônica (NFe) – Brazilian electronic Invoice

SEFAZ – Brazilian tax authority; (Secretaria de Estado da Fazenda)

SPED – Self-Audit Tax Report (Sistema Publico de escrituracao Digital [Public System of Digital Accounting])

XML – Secure electronic document format for eInvoicing

Chile

Despacho – Bill of Lading document in Chile

DTEs – Chilean tax documents; (Documento Tributarios Electrónicos)

SII – Chilean tax authority; (Servicio de Impuestos Internos)

UF – Chilean currency for doing business globally. 1 UF = 43 U.S. dollars; (Unidad de Fomento)

Mexico 

CFDI – Mexican electronic invoice; (Comprobante Fiscal Digital a través de Internet)

Comprobante and Addenda – Two parts of a CFDI, the Comprobante is the taxable fiscal information, the Addenda is everything else (shipping and handling, surcharges, etc.)

Folio – Package of invoices, collection of transactions for a given time period

PAC – Mexican eInvoice tax stamp provider; (Proveedores Autorizados de Certificación)

SAT – Mexican tax authority; (Servicio de Administración Tributaria)

Geral

B2B, B2G, B2C – Business to Business, Business to Government, Business to Consumer

VAT – Value Added Tax; See Appendix

Explanation of Value Added Tax (VAT):

The Value Added Tax (VAT), is a consumption tax used throughout Latin America. 

It is a tax based on consumption, rather than income—much like the sales tax system used in the United States. Every time value is added to a product in some way, and that product then changes ownership, the VAT is paid. However, sellers may to claim credits for VAT 

already paid.

Example:

A manufacturer pays $50 for lumber and nails to make shelves. Once made, these shelves can be sold directly, or incorporated into other products like desks, bookcases, or closet units. If the VAT is 10 percent and the shelves are sold for $100 (before taxes), here is how one would calculate taxes:

The manufacturer pays an input tax on the purchase of the raw materials, so in this example that amount would be $5, (10 percent of $50). In total, the manufacturer pays $55 when purchasing the raw goods from a supplier. When purchasing a shelf directly, the consumer pays an output tax of $10, or 10 percent of the purchase price of $100. Thus, the consumer pays the manufacturer a total of $110, regardless of whether the purchaser is the final consumer or plans to incorporate the shelves into another product like a bookcase and then resell it. In total, the tax remitted to the government is $10. After receiving the output tax from the consumer, the manufacturer takes credit for the $5 input tax they received, and pays in $5 to the government. The supplier who sold the lumber and nails to the manufacturer pays in the full $5 input tax they received.

Fonte: A CFO’s Guide to e-Invoicing in Latin America

Fonte Complementar: http://www.invoicewareint.com/blog