Brazil implements new tax rules for refused goods

New regulations regarding the tax treatment of refused or undelivered goods have entered into force in Brazil. Established by SINIEF 34/2026 and published by the National Council of Finance Policy (Confaz), the rules modify procedures for issuing Electronic Invoices (NF-e) when a recipient refuses a delivery or cannot be located.

In cases of total refusal or failure to locate the recipient, the original sender must issue an entry NF-e to record the return and nullify the initial operation. This must be identified as a “Credit Note” using specific codes. For partial refusals involving non-taxpayers, the sender is responsible for issuing the entry NF-e for the rejected items. However, when the recipient is an ICMS taxpayer, the recipient themselves must issue an exit NF-e for the rejected products.