Brazil¶

Introduction¶

With the Brazilian localization, sales taxes can be automatically computed and electronic invoices for goods (NF-e) and services (NFS-e) can be sent using AvaTax (Avalara) through API calls. Moreover, taxes for services can be configured.

For the goods and services tax computation and electronic invoicing process, you need to configure the contacts, company, products, and create an account in AvaTax which needs to be configured in the general settings.

For the services taxes, you can create and configure them from Odoo directly without computing them with AvaTax.

The localization also includes taxes and a chart of accounts template that can be modified if needed.

Configuration¶

Modules installation¶

Install the following modules to get all the features of the Brazilian localization:

Configure your company¶

To configure your company information, go to the Contacts app and search the name given to your company.

1. Select the Company option at the top of the page. Then, configure the following fields:

   • Name

   • Address: add City, State, Zip Code, Country

     • In the Street field, enter the street name, number, and any additional address information.

     • In the Street 2 field, enter the neighborhood.

   • Identification Number: CNPJ or CPF

   • Tax ID: associated with the identification type

   • IE: State registration

   • IM: Municipal registration

   • SUFRAMA code: Superintendence of the Manaus Free Trade Zone - add if applicable

   • Phone

   • Email

   

2. Configure the Fiscal Information within the Sales and Purchase tab:

   • Add the Fiscal Position for AvaTax Brazil.

   • Tax Regime: Federal Tax Regime

   • ICMS Taxpayer Type: indicates ICMS regime, Exempt status, or Non-Taxpayer

   • Main Activity Sector

   

3. Configure the following extra Fiscal Information if you are going to issue NFS-e:

   • Add the Fiscal Position for AvaTax Brazil.

   • COFINS Details: Taxable, Not Taxable, Taxable with rate 0%, Exempt, Suspended

   • PIS Details Taxable, Not Taxable, Taxable with rate 0%, Exempt, Suspended

   • CSLL Taxable If the company is subject to CSLL or not

   

4. Finally, upload a company logo and save the contact.

Configure AvaTax integration¶

Avalara AvaTax is a tax calculation and electronic invoicing provider that can be integrated in Odoo to automatically compute taxes by taking into account the company, contact (customer), product, and transaction information to retrieve the correct tax to be used and process the e-invoice afterward with the government.

Using this integration requires In-App-Purchases (IAPs) to compute the taxes and to send the electronic invoices. Whenever you compute taxes, send an electronic document (NF-e, NFS-e, etc), or perform any electronic flow (NF-e Cancellation, Correction letter, Invalidate invoice number range), an API call is made using credits from your IAP credits balance.

Credential configuration¶

To activate AvaTax in Odoo, you need to create an account. To do so, go to Accounting ‣ Configuration ‣ Settings ‣ Taxes, and in the AvaTax Brazil section, add the administration email address to be used for the AvaTax portal in the AvaTax Portal Email, and then click on Create account.

Warning

When testing or creating a production AvaTax Portal Email integration in a sandbox or production database, use a real email address, as it is needed to log in to the Avalara Portal and set up the certificates, whether you want to test or use it on production.

There are two different Avalara Portals, one for testing and one for production:

• Sandbox: https://portal.sandbox.avalarabrasil.com.br/

• Production: https://portal.avalarabrasil.com.br/

When you create the account from Odoo, be sure to select the right environment. Moreover, the email used to open the account cannot be used to open another account. Save your API ID and API Key when you create the account from Odoo.

After you create the account from Odoo, you need to go to the Avalara Portal to set up your password:

1. Access the Avalara portal.

2. Click on Meu primeiro acesso.

3. Add the email address you used in Odoo to create the Avalara/AvaTax account, and then click Solicitar Senha.

4. You will receive an email with a token and a link to create your password. Click on this link and copy-paste the token to allocate your desired password.

A1 certificate upload¶

In order to issue electronic invoices, a certificate needs to be uploaded to the AvaTax portal.

The certificate will be synchronized with Odoo, as long as the external identifier number in the AvaTax portal matches - without special characters - with the CNPJ number, and the identification number (CNPJ) in Odoo matches with the CNPJ in AvaTax.

Configure master data¶

Chart of accounts¶

The chart of accounts is installed by default as part of the data set included in the localization module. The accounts are mapped automatically in their corresponding taxes, and the default account payable and account receivable fields.

Journals¶

In Brazil, a series number is linked to a sequence number range for electronic invoices. The series number can be configured in Odoo on a sales journal from the Series field. If more than one series is needed, then a new sales journal will need to be created and a new series number assigned to it for each series needed.

The Use Documents field needs to be selected. When issuing electronic and non-electronic invoices, the Type field selects the document type used when creating the invoice. The Type field will only be displayed if the Use Documents field is selected on the journal.

Taxes¶

Taxes are automatically created when installing the Brazilian localization. Taxes are already configured, and some of them are used by Avalara when computing taxes on the sales order or invoice.

Taxes can be edited, or more taxes can be added. For example, some taxes used for services need to be manually added and configured, as the rate may differ depending on the city where you are offering the service.

Products¶

To use the AvaTax integration on sale orders and invoices, first specify the following information on the product depending on its intended use:

E-Invoice for goods (NF-e)¶

• CEST Code: Code for products subject to ICMS tax substitution

• Mercosul NCM Code: Mercosur Common Nomenclature Product Code

• Source of Origin: Indicates the origin of the product, which can be foreign or domestic, among other possible options depending on the specific use case

• SPED Fiscal Product Type: Fiscal product type according to SPED list table

• Purpose of Use: Specify the intended purpose of use for this product

E-Invoice for services (NFS-e)¶

• Mercosul NCM Code: Mercosur Common Nomenclature Product Code

• Purpose of Use: Specify the intended purpose of use for this product

• Service Code Origin: City Service Code where the provider is registered

• Service Codes: City Service Code where the service will be provided, if no code is added, the Origin City Code will be used

• Labor Assignment: Defines if your services includes labor

Contacts¶

Before using the integration, specify the following information on the contact:

1. General information about the contact:

   • Select the Company option for a contact with a tax ID (CNPJ), or check Individual for a contact with a CPF.

   • Name

   • Address: add City, State, Zip Code, Country

     • In the Street field, enter the street, number, and any extra address information.

     • In the Street 2 field, enter the neighborhood.

   • Identification Number: CNPJ or CPF

   • Tax ID: associated with the identification type

   • IE: state tax identification number

   • IM: municipal tax identification number

   • SUFRAMA code: SUFRAMA registration number

   • Phone

   • Email

   

   Note

   The CPF, IE, IM, and SUFRAMA code fields are are hidden until the Country is set to Brazil.

2. Fiscal information about the contact under the Sales & Purchase tab:

   • Fiscal Position: add the AvaTax fiscal position to automatically compute taxes on sale orders and invoices automatically

   • Tax Regime: federal tax regime

   • ICMS Taxpayer Type: taxpayer type determines if the contact is within the ICMS regime, Exempt status, or Non-taxpayer

   • Main Activity Sector: list of main activity sectors of the contact

   

3. Configure the following extra Fiscal Information if you are going to issue NFS-e:

   • Add the Fiscal Position for AvaTax Brazil

   • COFINS Details: Taxable, Not Taxable, Taxable with rate 0%, Exempt, Suspended

   • PIS Details: Taxable, Not Taxable, Taxable with rate 0%, Exempt, Suspended

   • CSLL Taxable: If the company is subject to CSLL or not

   

Fiscal positions¶

To compute taxes and send electronic invoices on sale orders and invoices, both the Detect Automatically and the Use AvaTax API options need to be enabled in the Fiscal Position.

The Fiscal Position can be configured on the contact or selected when creating a sales order or an invoice.

Workflows¶

This section provides an overview of the actions that trigger API calls for tax computation, along with instructions on how to send electronic invoices for goods (NF-e) and services (NFS-e) for government validation.

Tax computation¶

Tax calculations on quotations and sales orders¶

Trigger an API call to calculate taxes on a quotation or sales order automatically with AvaTax in any of the following ways:

• Quotation confirmation

  Confirm a quotation into a sales order.

• Manual trigger

  Click on Compute Taxes Using AvaTax.

• Preview

  Click on the Preview button.

• Email a quotation / sales order

  Send a quotation or sales order to a customer via email.

• Online quotation access

  When a customer accesses the quotation online (via the portal view), the API call is triggered.

Tax calculations on invoices¶

Trigger an API call to calculate taxes on a customer invoice automatically with AvaTax in any of the following ways:

• Manual trigger

  Click on Compute Taxes Using AvaTax.

• Preview

  Click on the Preview button.

• Online invoice access

  When a customer accesses the invoice online (via the portal view), the API call is triggered.

Electronic documents¶

Customer invoices¶

To process an electronic invoice for goods (NF-e) or services (NFS-e), the invoice needs to be confirmed and taxes need to be computed by Avalara. Once that step is done, click on the Send & Print button in the upper left corner. In the pop-up that appears, click on Process e-invoice and any of the other options - Download or Email. Finally, click on Send & Print to process the invoice with the government.

Before sending the electronic invoice for goods (NF-e) or services (NFS-e), some fields need to be filled out on the invoice:

• Customer, with all the customer information

• Payment Method: Brazil: how the invoice is planned to be paid

• Fiscal Position set as the Automatic Tax Mapping (Avalara Brazil)

• Document Type set as (55) Electronic Invoice (NF-e) or (SE) Electronic Service Invoice (NFS-e)

There are some other optional fields that depend on the nature of the transaction. These fields are not required, so no errors will appear from the government if these optional fields are not populated for most cases:

• Freight Model determines how the goods are planned to be transported - domestic

• Transporter Brazil determines who is doing the transportation

Credit notes¶

If a sales return needs to be registered, then a credit note can be created in Odoo to be sent to the government for validation.

Debit Notes¶

If additional information needs to be included, or values need to be corrected that were not accurately provided in the original invoice, a debit note can be issued.

Invoice cancellation¶

It is possible to cancel an electronic invoice that was validated by the government.

E-invoices for goods (NF-e)¶

Cancel an e-invoice for goods (NF-e) in Odoo by clicking Request Cancel and adding a cancellation Reason on the pop-up that appears. If you want to send this cancellation reason to the customer via email, activate the E-mail checkbox.

E-invoices for services (NFS-e)¶

Cancel an e-invoice for services (NFS-e) in Odoo by clicking Request Cancel. In this case, there is no electronic cancellation process, as not every city has this service available. The user needs to manually cancel this NFS-e on the city portal. Once that step is completed, they can request the cancellation in Odoo, which will cancel the invoice.

Correction letter¶

A correction letter can be created and linked to an electronic invoice for goods (NF-e) that was validated by the government.

This can be done in Odoo by clicking Correction Letter and adding a correction Reason on the pop-up that appears. To send this correction reason to a customer via email, activate the E-mail checkbox.

Invalidate invoice number range¶

A range of sequences that are assigned to sales journals can be invalidated with the government if they are not currently used, and will not be used in the future. To do so, navigate to the journal, and click the ⚙️ (gear) icon ‣ Invalidate Number Range (BR). On the Invalidate Number Range (BR) wizard, add the Initial Number and End Number of the range that should be cancelled, and enter an invalidation Reason.

Vendor bills¶

On the vendor bills side, when receiving an invoice from a supplier, you can encode the bill in Odoo by adding all the commercial information together with the same Brazilian specific information that is recorded on the customer invoices.

These Brazilian specific fields are:

• Payment Method: Brazil: how the invoice is planned to be paid

• Document Type: used by your vendor

• Document Number: the invoice number from your supplier

• Freight Model: NF-e specific how goods are planned to be transported - domestic

• Transporter Brazil: NF-e specific who is doing the transportation.