Código Fiscal de Operações e de Prestações (CFOP)
The Brazilian Tax System is formed by several codes that are used to organize and facilitate the companies' statements. CFOP is one of them, which we will explain in detail further.
What is CFOP?
Código Fiscal de Operações e de Prestações das Entradas de Mercadorias e Bens e da Aquisição de Serviços is a code specified by the Brazilian tax system and determined by the federal government. Known by the acronym CFOP, this number exists to define if a specific operation is taxable or not. The taxes involved are commonly ICMS, ISS and IPI.
The code must be obligatorily written in a specific field of the invoices of any operation, and it is also indicated in the issuance of financial statements, cash books etc. Below, you can check a Brazilian invoice model (note the field destined for CFOP, above on the left corner).
CFOP exists to structure and organize the companies’ presentations of transactions and operations to the government. It is normally applied in management software to facilitate the statements.
What is the codes’ pattern?
CFOP codes are composed of four digits, where the first, in case the prefix, determines the nature of the transaction, whether it is incoming or outgoing of goods/services. In turn, the suffix code determines the “Situação Tributária”.
It is important to note that the suffix that compose the CFOP is also a code itself, named CST (Código de Situação Tributária). This code will determine if the transaction is exempted, not taxable, fully taxable, partially taxable, deferred, and so on. The CST is the final two numbers in the CFOP.
To recap, the CFOP and CST are different codes that are usually combined in the issuance of invoices, in order to form a whole explanation about the transactions. The CFOP codes are separated by the following codes:
Das entradas de mercadorias e bens e da aquisição de serviços – states about the entry of goods and the acquisition of services
- 1.000 – Entry of goods or acquisition of services within the state:
Are classified in this group, operations or services in which the establishment sender is located in the same unit of the Federation of the recipient.
1.100 - Purchase for industrialization, commercialization or provision of services
1.150 - Transference for industrialization, commercialization or provision of services
1.200 - Sales returns of own production, third party or cancellations of values
1.250 - Purchase of electric energy
1.300 – Acquisition of communication services
1.350 – Acquisition of transportation services
1.400 - Entries of goods subject to tax replacement regime (regime de substituição tributária)
1.450 – Integration systems
1.550 – Operations involving fixed assets and materials for usage or consumption
1.600 – Credit or refunds of ICMS
1.650 - Entries for fuel, oil or no-oil products, and lubricants
1.900 - Other entries for purchases of goods or services
- 2.000 - Entry of goods or acquisition of services outside the state:
Are classified in this group, operations or services in which the establishment sender is located in a different state than the recipient.
2.100 - Purchase for industrialization, commercialization or provision of services
2.150 - Transference for industrialization, commercialization or provision of services
2.200 - Sales returns of own production, third party or cancellations of values
2.250 - Purchase of electric energy
2.300 – Acquisition of communication services
2.350 – Acquisition of transportation services
2.400 - Entries of goods subject to tax replacement regime (regime de substituição tributária)
2.500 – Entry of goods destined to exportation or devolution
2.550 – Operations involving fixed assets and materials for usage or consumption
2.600 – Credit or refunds of ICMS
2.650 - Entries for fuel, oil or no-oil products, and lubricants
2.900 - Other entries for purchases of goods or services
3.000 - Entry of goods or acquisitions of services from abroad:
Are classified in this group, the entries of goods coming from another country, including those resulting from the acquisition by auction, competition or any other form of alienation promoted by the government. Are also included services that were started abroad.
3.100 - Purchase for industrialization, commercialization or provision of services
3.150 - Transference for industrialization, commercialization or provision of services
3.200 - Sales returns of own production, third party or cancellations of values
3.250 - Purchase of electric energy
3.300 – Acquisition of communication services
3.350 – Acquisition of transportation services
3.400 - Entries of goods subject to tax replacement regime (regime de substituição tributária)
3.500 – Entry of goods destined to exportation or devolution
3.550 – Operations involving fixed assets and materials for usage or consumption
3.600 – Credit or refunds of ICMS
3.650 - Entries of fuel, (oil or no-oil derivatives), and lubricants
3.900 - Other entries for purchases of goods or services
Da saída de mercadorias, bens ou prestação de serviços – states about the output of goods, assets and services redered
5.000 - Output of goods and provision of services within the state:
Are classified in this group, operations or services in which the establishment sender is located in the same unit of the Federation of the recipient.
5.100 – Sales of own production or by third party
5.150 – Transference of own production or by third party
5.200 - Sales returns of own production, third party or cancellations of values
5.250 - Sales of electric energy
5.300 – Provision of communication services
5.350 – Provision of transportation services
5.400 - Exit of goods subject to tax replacement regime (regime de substituição tributária)
5.450 – Integration systems
5.500 – Consignment of goods destined to exportation or devolution
5.550 - Operations involving fixed assets and materials for usage or consumption
5.600 – Credit or fund of ICMS
5.650 – Exits of fuel, (oil or no-oil derivatives), and lubricants
5.900 - Other exits for purchases of goods or services
6000 - Output of goods or acquisition of services outside the state:
Are classified in this group, operations or services in which the establishment sender is located in a different state than the recipient.
6.100 – Sales of own production or by third party
6.150 – Transference of own production or by third party
6.200 - Sales returns of own production, third party or cancellations of values
6.250 - Sales of electric energy
6.300 – Provision of communication services
6.350 – Provision of transportation services
6.400 - Exit of goods subject to tax replacement regime (regime de substituição tributária)
6.500 – Consignment of goods destined to exportation or devolution
6.550 - Operations involving fixed assets and materials for usage or consumption
6.600 – Credit or fund of ICMS
6.650 – Exits of fuel, (oil or no-oil derivatives), and lubricants
6.900 - Other exits for purchases of goods or services
7000 - Output of goods or acquisitions of services from abroad:
Are classified in this group, operations or services in which the customer is located in another country.
7.100 – Sales of own production or by third party
7.150 – Transference of own production or by third party
7.200 - Sales returns of own production, third party or cancellations of values
7.250 - Sales of electric energy
7.300 – Provision of communication services
7.350 – Provision of transportation services
7.400 - Exit of goods subject to tax replacement regime (regime de substituição tributária)
7.500 – Consignment of goods destined to exportation
7.550 - Operations involving fixed assets and materials for usage or consumption
7.600 – Credit or fund of ICMS
7.650 – Exits of fuel (oil or no-oil derivatives) and lubricants
7.900 - Other exits for purchases of goods or services
Other than these codes there are several other codes with different suffixes that describe subgroups between the categories described above. You can check all of them here (In Portuguese). This is a fixed table, in which the codes never change. Every now and then, some new codes are inserted.