Brazil updates ICMS VAT rules on imports and inter-state sales

Thu 27th Jun 2013

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