# Understading the scenario of the e-Invoice

Source: https://developer.avalara.com/invoice_goods_en/concepts/e-invoice/

# Understading the scenario of the e-Invoice

Until 2008, invoices in Brazil were issued on paper. Any company could obtain authorization to issue a certain number of invoices manually to be sent to its customers.

However, since 2008 the Brazilian government has adopted a system for issuing electronic invoices and has made it mandatory for all Brazilian companies that have transactions in products and goods.

The Invoice is a document that proves an act of a commercial transaction, be it the purchase or sale of goods, or the provision of services.

Traditionally, this model was printed by graphics in blocks, and included information about the issuing company, such as name, address, CNPJ, etc., in addition to serial numbers that helped the government to inspect each invoice issued. This was gradually replaced by the issuance of Electronic Invoices, where all transactions are reported in real-time to the government, leaving little room for the possibility of tax evasion.

Simply put, NF-e is the old manual Invoice, issued online. It allows real-time reporting of all transactions to the Secretary of Finance (SEFAZ), which is responsible for taxation and revenue.

The electronic version of the invoices is issued one by one, and each and every sale (or import) transaction is reported to the government, which authorizes them in real-time.

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