Gringoes.com: Invoicing a customer in Brasil

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ajlennon
Newbie
Newbie

Joined: 06 August 2009
Location: United Kingdom
Online Status: Offline
Posts: 1

Topic: Invoicing a customer in Brasil
Posted: 06 August 2009 at 16:42

Hi,

I wonder if anybody can help?

We are an IT consultancy based in the United Kingdom and have a software technology we're licensing to a company in Brasil.

We've agreed the price and invoiced for that amount. In the UK we'd add value added tax but as this is outside the E.U. we haven't.

The customer has come back to us and asked us to invoice for a greater amount as there is some issue with " 15% of income tax"

Can anybody suggest how this is normally handled in Brasil where there is international invoicing?

Thanks,

Alex Lennon

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Mineiro_Alemão
Senior Member

Joined: 14 April 2006
Location: Brazil
Online Status: Offline
Posts: 1221

Posted: 16 August 2009 at 19:11

Income tax ? I´m not an expert wheather you didn´t understand what your client tried to explain or he didn´t made himself clear. But paying a foreign invoice has nothing to do with incometax!?!? Confused

Or maybe someone in the Brazilian company is cheating on his company. Asking for a higer value on the invoice that they actually pay Big%20smile

, overpriceing and keeping the difference. SUPERFATURAMENT - Very comun in Brazil.

Anyway, it´s more important the the Brazilian client is able to make a intl. money transfer through his bank, incl. registration with the BANCO CENTRAL.
That can be tricky if they have some tax issues (unpaid taxes) with the federal tax authorities (RECEITA FEDERAL), so they don´t get an authorization for the money to be send abroad.

So without further details ist´s hard to guess what could be the problem!?

GOOD LUCK WITH THAT!

Edited by Mineiro_Alemão - 16 August 2009 at 19:14

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Mineiro_Alemão
Senior Member

Joined: 14 April 2006
Location: Brazil
Online Status: Offline
Posts: 1221

Posted: 16 August 2009 at 19:21

You could also try to get more information at the BRAZILIAN CHAMBER OF COMERCE IN THE UK:

http://www.brazilianchamber.org.uk/

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Stallone
Groupie
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Joined: 01 August 2009
Online Status: Offline
Posts: 48

Posted: 16 August 2009 at 19:37

Income Tax...that does not seen right...It could be a witheld, but the bank you use can elaborate on that, if you do not have one, I can send you my bank´s manager contact info.

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sven
Gringoes.com Guru

Joined: 14 March 2007
Location: Brazil
Online Status: Online
Posts: 4659

Posted: 17 August 2009 at 11:47

They want i higher value on the invoice to evade taxes.

Si Hoc Legere Scis Nimium Eruditionis Habes

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MovingSoon
Senior Member

Joined: 21 January 2007
Location: Brazil
Online Status: Online
Posts: 1290

Posted: 17 August 2009 at 14:16

Something 'afoul of the law' in Brazil??

I am shocked at this allegation...

Life's journey is not to arrive at the grave with a well preserved body, but to skid in sideways at a high rate of speed, drink in one hand, totally worn out shouting, "Whoa, what a ride"!

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sven
Gringoes.com Guru

Joined: 14 March 2007
Location: Brazil
Online Status: Online
Posts: 4659

Posted: 17 August 2009 at 15:00

Si Hoc Legere Scis Nimium Eruditionis Habes

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Money Transfers
Gringoes.com : Brazil : Money Transfers

Author	Message
ajlennon Newbie Joined: 06 August 2009 Location: United Kingdom Online Status: Offline Posts: 1	Topic: Invoicing a customer in Brasil Posted: 06 August 2009 at 16:42
	Hi, I wonder if anybody can help? We are an IT consultancy based in the United Kingdom and have a software technology we're licensing to a company in Brasil. We've agreed the price and invoiced for that amount. In the UK we'd add value added tax but as this is outside the E.U. we haven't. The customer has come back to us and asked us to invoice for a greater amount as there is some issue with " 15% of income tax" Can anybody suggest how this is normally handled in Brasil where there is international invoicing? Thanks, Alex Lennon

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Mineiro_Alemão Senior Member Joined: 14 April 2006 Location: Brazil Online Status: Offline Posts: 1221	Posted: 16 August 2009 at 19:11
	Income tax ? I´m not an expert wheather you didn´t understand what your client tried to explain or he didn´t made himself clear. But paying a foreign invoice has nothing to do with incometax!?!? Or maybe someone in the Brazilian company is cheating on his company. Asking for a higer value on the invoice that they actually pay , overpriceing and keeping the difference. SUPERFATURAMENT - Very comun in Brazil. Anyway, it´s more important the the Brazilian client is able to make a intl. money transfer through his bank, incl. registration with the BANCO CENTRAL. That can be tricky if they have some tax issues (unpaid taxes) with the federal tax authorities (RECEITA FEDERAL), so they don´t get an authorization for the money to be send abroad. So without further details ist´s hard to guess what could be the problem!? GOOD LUCK WITH THAT! Edited by Mineiro_Alemão - 16 August 2009 at 19:14

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Mineiro_Alemão Senior Member Joined: 14 April 2006 Location: Brazil Online Status: Offline Posts: 1221	Posted: 16 August 2009 at 19:21
	You could also try to get more information at the BRAZILIAN CHAMBER OF COMERCE IN THE UK: http://www.brazilianchamber.org.uk/

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Stallone Groupie Joined: 01 August 2009 Online Status: Offline Posts: 48	Posted: 16 August 2009 at 19:37
	Income Tax...that does not seen right...It could be a witheld, but the bank you use can elaborate on that, if you do not have one, I can send you my bank´s manager contact info.
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sven Gringoes.com Guru Joined: 14 March 2007 Location: Brazil Online Status: Online Posts: 4659	Posted: 17 August 2009 at 11:47
	They want i higher value on the invoice to evade taxes.
	Si Hoc Legere Scis Nimium Eruditionis Habes
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MovingSoon Senior Member Joined: 21 January 2007 Location: Brazil Online Status: Online Posts: 1290	Posted: 17 August 2009 at 14:16
	Something 'afoul of the law' in Brazil?? I am shocked at this allegation...
	Life's journey is not to arrive at the grave with a well preserved body, but to skid in sideways at a high rate of speed, drink in one hand, totally worn out shouting, "Whoa, what a ride"!
	IP Logged

sven Gringoes.com Guru Joined: 14 March 2007 Location: Brazil Online Status: Online Posts: 4659	Posted: 17 August 2009 at 15:00

	Si Hoc Legere Scis Nimium Eruditionis Habes
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