Implement 2026 tax changes in electronic invoicing for Brazil

Business value

This update includes enhancements to the Brazilian electronic invoicing functionality within the integration with the Brazilian Tax Authorities. It covers the required changes introduced by the tax reform that include adapting the XML generation logic to include new fields, implementing new validation rules, and a transition period during which old and new taxes coexist.

Feature details

Microsoft released layout changes to the Brazilian electronic invoicing functionality in accordance with 2026 tax changes. The update includes the revision of the NF-e format and its transition to Electronic Reporting to ensure compliance with updated tax rules and classifications. It also introduces the new National (Federal) NFS-e and São Paulo city NFS-e formats for service invoices. All formats are generated using the Electronic Reporting framework. NF-e continues to be submitted to SEFAZ in the same way as previously (in the code in finance and operations apps). NFS-e and São Paulo NFS-e aren't submitted out of the box; additionally, the XML is not digitally signed. Customization or integration with a third-party solution is required to submit and sign service fiscal documents.