Brazil may block ICMS on e-services

September 14th, 2018

Brazil’s Chamber of Deputies is reviewing blocking the new ICMS  (Imposto Sobre Operações Relativas à Circulação de Mercadorias e Serviços de Transporte Interestadual de Intermunicipal e de Comunicações) charge on digital and electronic services. ICMS has recently been levied on the supply to consumers of digital goods via downloading or streaming. This includes: music; video; …


Brazil software taxation

November 29th, 2017

Software Taxation in Brazil – New Tax War among States and Municipalities promises to raise a lot of issues to taxpayers in 2018 The understanding that had been pacified by the Supreme Court’s jurisprudence (RE 176.626-3) on the software tax rule fell at the end of 2017. This change is generating legal uncertainty for all …


Brazil to implement VAT

August 21st, 2017

Brazil has confirmed that it plans to consolidate its existing complex indirect taxes into a single, state-wide Value Added Tax regime.  A single excise tax regime will be introduced at the same time. The aim is to significantly reduce the complex consumption tax regime, and eliminate double taxation.  The Brazilian Ministry of Finance currently estimates …


Brazil exempts e-books from tax

March 11th, 2017

Brazil’s Federal Court has exempted electronic books from tax.  This aligns to the tax treatment of paper books, magazines and newspapers.  The court held that digital books were indistinguishable from printed books.  The ruling relates to a number of federal, state (ICMS) and city taxes, and no implementation date has been set. This compares to …


Brazil drops e-commerce ICMS for small businesses

February 24th, 2016

Brazil has suspended ICMS, the national VAT regime, on small internet retailers. The tax is charged on the taxable supply of goods or services to consumers across Brazilian internal states borders. The Brazilian Federal Court has this month held that the obligation on small e-retailers to charge ICMS as part of the simplified accounting regime …


Brazil ICMS B2C 2016 changes

November 26th, 2015

From the 1 January 2016, the rules on the calculation of ICMS changes on sales of goods to consumers across Brazilian internal states. ICMS is the Brazilian indirect tax (VAT) on the sale of goods and services. Where goods are sold across internal Brazilian state borders, ICMS is due in the state of the seller …


Brazil raises ISS to 2%

November 1st, 2015

The Brazilian Chamber of Deputies ruled this week that the minimum Imposto sobre Serviços will rise to 2%. ISS is the service tax levied by municipalities. The rise in the minimum rate is to prevent the increasing race to the bottom on competing cities and regions looking to attract business. The rise will now need …


Brazil raises threshold on simplified VAT reporting

September 9th, 2015

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 …