Is it the MEI and has it exceeded the billing limit? see what you’re doing

Formalization is one of the great advantages for those who decide to become a Individual Small Entrepreneur (MEI). As a result, the entrepreneur now owns a CNPJ, as well as access to Social Security and lines of credit. The bill limit cannot exceed R$81 thousand annually. But what if this value is exceeded? what should be done?

Read more: I am receiving Brazil assistance, can I have a MEI?

Bill wants to increase the annual billing limit to R$130,000. Until the new value is approved, each MEI must worry about billing limits to continue to qualify as an individual entrepreneur.

MEI billing

In addition to billing, MEI also has to follow other rules, such as designating at most one employee who gets one minimum wage. You cannot be the owner, partner, or liability of another company.

In general, the main proposal of the MEI is to formalize the work of those professionals who previously worked without a CNPJ. To control billing, the limit is R$81 thousand. But, by law, if the MEI exceeds this amount, he still has an allowable margin of 20% of that amount.

On the other hand, if R$81,000 continues to be exceeded every so often, the best thing to do is to change the label. It’s just that MEI has lower fees and taxes. Therefore, those who do not fit this billing limit need to change the history. The next category is Eireli or ME, medium in size.

The concept is that if MEI earns more, the company will grow. Thus, the tax must also be higher to keep up with what has already been collected from other businesses.

Extrapolating the billing limit, the small entrepreneur no longer fits Simples Nacional. Also, remember that if it exceeds the allowed 20% limit, the MEI must promptly request system disqualification. Hence, it will become me. The bills will go up to the annual maximum of R$360,000.