In Brazil, companies selling goods and services must generate an electronic nota fiscal (nota fiscal eletrônica), which is an XML document that is issued and stored electronically to document the movement of goods or services between parties. The electronic nota fiscal must be digitally signed to ensure data integrity and the authenticity of the issuer.

Before you can issue an electronic nota fiscal and send it with goods, you must generate an XML file containing the nota fiscal details and send it the Ministry of Finance (Ministerio de Fazenda or SEFAZ) for the corresponding Brazilian federal state. SEFAZ validates the file and returns an authorization for use. No transit of goods is allowed without this authorization. A legally valid electronic nota fiscal is guaranteed by the issuer’s digital signature and is authorized for use in the seller’s tax domicile.

To follow the transit of goods, you can print a simplified graphical representation of the electronic nota fiscal called a Documento Auxiliar da Nota Fiscal Eletrônica (DANFE). The DANFE is a tax document that helps track the movement of goods. The DANFE is a graphical representation of the electronic nota fiscal, and is only valid if it corresponds to an electronic nota fiscal that has been authorized by SEFAZ. You must then e-mail the electronic nota fiscal to your customer.