Bloco K is part of Brazil`s newest e-accounting measures that require the electronic compilation of production and inventory processes and materials.
What it is
Bloco K is an electronic compilation of production and inventory processes and materials. All manufacturers that sell products using an e-Invoice (NFe) are required to issue the Bloco K to the SEFAZ as part of the SPED Fiscal requirements. Thus, the tax authorities receive all necessary information for calculating ICMS (sales tax) and IPI (tax on industrialized goods).
Who needs to implement it when
Starting January 1st, 2019, all companies need to issue the Bloco K report to the SEFAZ!
The implementation process has started in 2017 when all companies exceeding revenues of 300 million Reais were required to use Bloco K and has continued in 2018 with all companies exceeding revenues of 78 million Reais.
1. Category: for manufacturing companies with a revenue of or more than R$300.000.000,00:
- 1. January 2017, limited to inventory and balance information (Register K200 and K280) with CNAE 10 – 32;
- 1. January 2019, complete accounting of Bloco K for industrial companies that are part of the CNAE groups 11, 12, 291, 292, 293
- 1. January 2020, complete accounting of Bloco K for industrial companies that are part of the CNAE groups 27 – 30
- 1. January 2021, complete accounting of Bloco K for industrial companies that are part of the CNAE groups 23, 294, 295
- 1. January 2022, complete accounting of Bloco K for industrial companies that are part of the CNAE groups 10, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 24, 25, 26, 28, 31, 32
2. Category: for manufacturing companies with a revenue of or more than R$ 78.000.000,00 with CNAE 10 – 32
- 1. January 2018, limited to inventory and balance information (Register K200 und K280)
3. Category: for the remaining manufacturing companies with CNAE 10 – 32; wholesale distributions with CNAE 462 – 469 and companies that are considered as industrial will be defined
- 1. January 2019, limited to inventory and balance information (Register K200 und K280)
Which information need to be tracked
- Production information on raw materials, components and manufactured goods
- Information on inventory and stock movement
- Information on components lost during the production process
- Information on third party suppliers
- Detailed information on collected ICMS and IPI fees
- Produced volumes
- Volume of used goods
- Volume of produces goods through third parties
- Volume of used materials during production by third party
- Internal stock movement of goods that ahve not been used during production
- Material property of the company
- Material property of the company owned by third parties
- Material property of third parties stored in the company
- List of all materials for self-manufacturing and production by third parties
Which reports need to be issued to SEFAZ
- Standardized Specific Consumption
- Bloco K opening
- ICMS/IPI Collection Dates
- Carrying Stock
- Other Internal Movements
- Produced Items
- Manufactured Products
- 3rd Party Manufactured Products
- 3rd Party Inputs Usage
- Block Closing
Which implementation requirements exist
The required information will change the methods of companies` tracking and documentation strategies regarding their internal inventory. Initially, companies have to identify which reports are mandatory for them. Then, new accounting methods have to be created that comply with the depth of detail required by the reports. Finally, adequate interfaces need to be developed which enable the transmission of the data to SEFAZ.
Which penalties are impending
The goal of Bloco K is to compare all in- and outgoing electronic invoices in order to keep track of the entire goods cycle (buying – production – selling) using the SPED reports. Inconsistencies between the reports result in automatic audits and fines due to non-compliance.