What is CFOP ( Tax Code for Operations and Services)

The meaning of the acronym CFOP is the Tax Code for Operations and Services for the entry and exit of goods (intercity and interstate). It is nothing more than a numerical code that identifies the circulation nature of a commodity. The government uses this table to check circulation.

We can say that through this table it will be defined whether or not the tax operation will have to collect taxes. It is mandatory that this code is included in all company tax documents when goods, goods and services are purchased and shipped. The documents that need to appear in these codes are:

  • Invoices
  • Tax Books
  • Magnetic Files
  • Transport Knowledge
  • Others required by law

A CFOP code   consists of four digits whose first number identifies the type of operation:

Appetizer

  • 1,000 – Entry and / or Acquisition of State Services
  • 2,000 – Entry and / or Acquisition of Services from other States
  • 3,000 – Entry and / or Acquisition of Services from Abroad

Outputs

  • 5,000 – Exits or Services Rendered to the State
  • 6,000 – Departures or Services to other States
  • 7,000 – Exits or Services Rendered Abroad

The main function of the CFOP code is to guarantee greater transparency in the purchase and sales operations of companies to the tax authorities, allowing a more effective and correct collection of taxes from the tax authorities. But it is also of fundamental importance in its use as regards the code group, whose differentiated visualization enables better business management.

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