Changes in the Brazilian Tax Compliance… Are you prepared for these circumstances?

At the beginning of July 2019 the Brazilian president, Jair Bolsonaro announced on Twitter, that the Ministry of Economy will analyze the possibility of reducing taxes from 16% to 4% on imported information technologies, such as computers and cell phones. For these sudden changes in the Brazilian tax system, you need adequate support. LatamReady is always prepared for these changes because we have experience in Brazil, Mexico, Argentina, Colombia and in the rest of Latin American countries, providing solutions for large corporations within NetSuite. Without further ado, let’s tell you everything about our very own first experience in Brazil.

Our first experience using NetSuite in Brazil …

In our first implementation in Brazil, we managed to use the standard features from NetSuite, but back then we struggled with all the manual work because of the transactions within NetSuite that have to be added manually and line by line.

Does this problem only happen in Brazil?

Unfortunately no, we can face similar situations in other Latin American countries. There’s always work around but then it comes to the point of how much manual work these were around in Brazil. You will need more staff and more time to do this work, not only in Brazil but also in the rest of your Latin American subsidiaries if you don’t have the right tax compliance solution.

Then Brazil may be a nightmare… right?

It could work for small and very standard and/or small operations or companies that only offer services. If that’s not the case we can say that there’s a pretty big gap between what NetSuite native functionalities have and what we need to be compliant with for local requirements. That’s why, when it comes to multi-latin corporations using NetSuite you will definitely need our LatamReady SuiteApp to be compliant within Latin America.

Remember, it’s not only about the tax calculation

For example, every time you have the VAT and the withholding tax amount you will need to complete several steps to take all the information that you need for issuing your legal report. It’s not only the calculation, not the amount, not the rates, but also the right document following the structure of the files asked by the local government. more taxes within VAT, and that’s what makes NetSuite SuiteTax Engine calculation complex.

Do you have a subsidiary in Brazil or anywhere else in the Latin America Region?
Based on our own experience, LatamReady has developed the ultimate SuiteApp in order to be compliant to the tax regulations in Brazil, Mexico, Argentina and Colombia including not only e-invoicing but also e-payments, legal ledgers, and many other features for more than 14 other countries in Latin America within NetSuite. Feel free to call one of our sales reps at +1-786-600-2641 to know more! You can also find our pricing list on www.latamready.com, after that you’ll be fully on point with LatAm tax compliance using NetSuite, that’s for sure!

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