The MEI (Microempreendedor Individual) regime was created in Brazil to make it easier for informal workers and small entrepreneurs to formalize their businesses. It’s a powerful tool that offers legal security, simplified taxation, and access to social benefits. But even with all its advantages, many MEIs still struggle with accounting, compliance, and tax obligations.

Understanding your responsibilities as an MEI is essential—not just to avoid penalties, but to grow sustainably and take your business to the next level.

In this guide, you’ll learn what MEIs must do to stay compliant, the common mistakes to avoid, and how even basic accounting practices can set the foundation for long-term success.

What Is an MEI?

The Microempreendedor Individual (MEI) is a special category under Brazilian law designed for self-employed individuals and micro-businesses who want to operate legally, with less bureaucracy and lower tax burdens.

Created under Complementary Law 128/2008, this regime allows entrepreneurs to register their business with the government and gain access to:

• A CNPJ (business registration number)

• The ability to issue Notas Fiscais (invoices)

• A simplified tax payment system (DAS)

• Access to INSS contributions, retirement benefits, and sick leave

• Easier access to credit and digital banking services

MEI Eligibility Requirements

To qualify as an MEI in Brazil, you must meet the following criteria:

• Annual gross revenue of up to R$ 81,000 (equivalent to R$ 6,750 per month)

• Work in a profession or business activity permitted under the MEI law

• Have no more than one employee, who earns the minimum wage or union wage

• Not be a partner or owner in another company

• Operate only within Brazilian territory

These rules are strict. If you go beyond them, you’ll be forced to migrate to a Simples Nacional Microempresa (ME), which involves more complex accounting and higher tax obligations.

Accounting Obligations for MEIs

Although MEIs are not required to hire an accountant, this does not mean they are exempt from tax and reporting responsibilities.

Here’s a detailed look at what every MEI needs to do to stay compliant:

1. Monthly DAS Payment

The Documento de Arrecadação do Simples Nacional (DAS-MEI) is the single monthly payment that covers your:

• INSS contribution (5% of the minimum wage)

• ICMS (for commerce and industry) or ISS (for services)

Current monthly values (as of 2024):

💡 Tip: The payment is due by the 20th of each month. Late payments generate fines and interest, and persistent non-payment can lead to loss of MEI status.

To pay, use the PGMEI system on the official gov.br portal or through banking apps that support MEI services.

2. Record Your Monthly Income

MEIs don’t have to send monthly balance sheets to the Receita Federal, but they must maintain a control of their revenue.

What you should do every month:

• Fill in a Monthly Revenue Report (Relatório Mensal de Receitas Brutas)

• Organize and store sales receipts, invoices, and other income documents

• Keep a Livro Caixa (cash book)—even a simple spreadsheet can do

Why this matters:

• It helps you track whether you’re close to the R$ 81,000 annual limit

• Makes the Annual Declaration (DASN-SIMEI) easier to submit

• Gives you a clearer picture of your business health

🧾 Keep documents for at least 5 years, as required by tax law.

3. Submit the Annual Income Declaration (DASN-SIMEI)

The Declaração Anual do Simples Nacional para o MEI (DASN-SIMEI) is the MEI’s annual tax report. It is mandatory and must be submitted every year by May 31st.

You must declare:

• Total gross revenue earned in the previous year

• Whether you had an employee during that period

Even if you didn’t earn any income, you still need to file the declaration—otherwise, your CNPJ may be suspended or canceled.

The process is free and can be done online via the Simples Nacional portal.

4. Issue Notas Fiscais (Invoices)

Whether or not you need to issue Notas Fiscais depends on who your clients are.

• For individuals (B2C): You are not legally required to issue an invoice unless requested by the customer.

• For companies (B2B): You must issue a Nota Fiscal for every service or product sold.

To issue invoices:

• Register with your municipal tax authority (for services) or state SEFAZ (for products)

• Use the city’s online system or authorized platforms to generate your invoices

• Keep digital records of issued invoices for future reference

Failure to issue invoices when required can lead to fines and legal trouble.

5. Monitor Your Revenue Cap

If you exceed the annual limit of R$ 81,000:

• You may remain MEI if the excess is up to 20% (R$ 97,200), but you must pay additional taxes.

• If you exceed this amount, you must migrate to a Microempresa (ME) and adopt Simples Nacional with full accounting.

Exceeding the limit and not adjusting your category puts you at risk of retroactive fines, tax debt, and CNPJ cancellation.

6. Stay Updated on Legal and Regulatory Changes

The MEI rules evolve over time. It’s essential to stay informed about:

• Adjustments to the revenue ceiling

• New or excluded professional activities

• Changes to DAS values or contribution rates

• Deadlines for declarations and compliance

Follow official government portals like gov.br/mei or consult with a local accounting expert.

Common Mistakes MEIs Should Avoid

Avoiding these common errors will help you stay compliant and avoid penalties:

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Benefits of Adopting Basic Accounting Practices

Even though the MEI doesn’t legally require a professional accountant, basic accounting can provide significant advantages.

Why you should care about accounting as an MEI:

• Track your profitability and cash flow

• Control expenses and plan better purchases

• Understand seasonality and revenue fluctuations

• Simplify transitions if you scale beyond MEI limits

• Improve access to credit, as banks favor organized businesses

• Make informed business decisions, like pricing and investments

You can use free tools like spreadsheets, or apps designed for MEIs such as MEI Fácil, Qipu, or QuickBooks MEI.

When to Hire an Accountant

While MEIs can handle their own accounting, it may be worth hiring an accountant if:

• You’re close to surpassing the revenue cap

• You’re considering hiring more than one employee

• You’re planning to transition to ME or EPP

• You have doubts about legal or fiscal obligations

• You’re facing debts, fines, or irregularities

A good accountant not only helps with compliance but can also guide your strategic growth.

Final Thoughts: MEI Accounting Is Simple, but Not Optional

Becoming an MEI is one of the easiest and most effective ways to start a legal business in Brazil. The regime offers numerous benefits—but it also demands discipline and attention to your obligations.

By paying DAS monthly, tracking your income, submitting your annual declaration, and staying informed about legal changes, you’ll stay compliant and ready for growth.

Even if you’re not required to hire an accountant, treating your finances seriously will help you make better decisions, qualify for financing, and prepare for the day your business outgrows the MEI model.

Because every great business—no matter how small it starts—needs a solid financial foundation to thrive.