Brazil updates ICMS VAT rules on imports and inter-state sales
To help reduce the compliance burden on Brazilian importers, a number of changes to the complex national and state indirect tax system (ICMS) have been introduced. Brazilian ICMS is levied at approximately 4% of the value of imports subsequently then transported across state borders.
- Simplification of draw backs, deferrals and exemptions
- There is a new definition of costs and taxes due on imports to clear up some misunderstandings
- Companies will no longer have to declare the import value of goods and subsequent inter-state movements to retain commercial confidentiality from their eventual customers