Microenterprises and small businesses enrolled in Brazil’s Simples Nacional tax regime must issue invoices for services subject to the municipal ISS tax exclusively through the national electronic service invoice system from November 1. The platform is run by the Federal Revenue Service in partnership with municipalities, replacing local systems for businesses covered by the rule.
The national NFS-e uses a common format across cities and stores invoice information in a centralized database. Individual microentrepreneurs, or MEIs, are not affected by the change because they have used the national system since September 2023. Businesses that sell only goods are also excluded, as they issue a different type of electronic invoice. Companies outside Simples Nacional, including those under the presumed-profit and actual-profit regimes, continue to follow their municipalities’ rules.
The new system can be accessed through the national NFS-e portal, its mobile app or an API connection. Businesses can log in with a gov.br account or a digital certificate. On first access, they must confirm their details and set up an issuing profile; their municipal registration must be active and in good standing. Recording frequently provided services and regular clients can make later invoice submissions easier. Businesses issuing invoices through integrated software need an ICP-Brasil digital certificate.
Invoices retain familiar information, including details about the service provider and customer, the service description and its value. They also use standardized classifications, such as the national tax code for the service, the Brazilian Services Nomenclature, the municipality where ISS is due, the company’s Simples Nacional status and any ISS withheld by the customer.
The change affects the way invoices are issued, not the calculation of taxes. The rollout of the national invoice system is also separate from the tax reform provisions concerning CBS and IBS, which are scheduled to take effect on January 1, 2027. Until the end of December 2026, businesses must continue following the rules of the simplified tax regime.
Some municipalities already use the national platform, so the impact will be greater in places that still rely on their own systems. In São Paulo, for example, the municipal Nota do Milhão system will remain available only for consultation and for issuing invoices related to services provided through October 31. Businesses using software connected only to a municipal issuer should check that it has been adapted to the national standard.
Centralizing invoices may make it easier for tax authorities to compare issued documents with declared revenue. Businesses are therefore advised to check their invoices and reported figures each month. Accountancy executive Charles Gularte recommends setting up service classifications carefully at the first registration and confirming uncertain codes with an accountant, since a classification error could recur on later invoices.
The rules do not set a specific fine for failing to use the national system. Penalties for not issuing an invoice, or issuing one incorrectly, remain subject to each municipality’s legislation and can vary by city. If the system is unavailable, businesses should document the outage with screenshots and its date and time, issue the invoice once service resumes, monitor official notices and contact their accountant for guidance. Failure to issue an invoice through the required system could delay billing and payment for services.
Sources: Folha Mercado.