Brazil raises threshold on simplified VAT reporting
The threshold under which small businesses may qualify for the simplified tax and state ICMS reporting regime has been changed. Small companies with an turnover below the new threshold of Brazlian Real 14.4 million may now opt to report under the regime – the previous threshold was Real 3 million.
The regime covers charging and reporting of state Value Added Tax (Brazilian ICMS), corporation tax and municipal City taxes. It was introduced to reduce the burden of reporting in one of the most complex regimes in the world.
Microbusinesses have also had their threshold raised to Real 900,000 per annum.