VAT news tagged as "ICMS"


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 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 …


Brazil attempts to harmonise services tax

July 15th, 2015

The Brazilian parliament is reviewing a Bill which would harmonise the Imposto Sobre Servicos (ISS) tax on services. This would include placing it at the state, federal level. ISS is a municipal level turnover tax on services. The services subject to the ISS are outlined by the Federal Complementary Law, and listed in detailed by …


Brazil fails on ICMS tax reform

April 12th, 2015

The Brazilian government has failed last week in its latest attempts to gain agreement between the 27 States on the reform and harmonisation of the ICMS / VAT regime. The antiquated intra-state tax is seen as a major constraint to developing an internal free market and helping the Brazilian economy recover from its latest recession. …


Brazil opts for origin principle on e-commerce VAT

September 24th, 2014

In a move leaving it at odds with the OECD VAT Guidelines and practise in the rest of the world, Brazilian ICMS (VAT) will be charged on intra-state e-commerce sales on the origin principle. As a consumption tax, most countries elect to make the location of the consumer the place of supply or taxation, and …


Brazil VAT/IPI exclusive of discounts

September 13th, 2014

Brazil is to follow common Value Indirect Tax practise and exclude unconditionsl discounts from the calculation of indirect tax on manufacturing, Impostos sobre Produtos Industrializados (IPI). Brazilian IPI rates vary from 0% to over 300%, depending on the products. The Supreme Court of Brazil this month concluded that the Brazilian VAT / IPI calculation should …


Brazil ICMS VAT disputes restart

August 10th, 2014

The provisional settlement of intra-state Brazilian ICMS (VAT) between states has broken down again as Sao Paulo challenges at the Supreme Federal Court changes raised by other states. Sao Paulo issued legal proceedings at the end of last month against: Maranhão; Minas Gerais; Mato Grosso do Sul; Pernambuco; Santa Catarina; and Tocantins. It claims that …


Brazil grants VAT (ICMS) amnesty

May 27th, 2014

The city of Sao Paulo has launched a tax amnesty for Imposto sobre Circulação de Mercadorias e Serviços (ICMS). The decrees announcing the amnesty were published at the start of this month. They offer up to 75% off penalties and interest for already overdue amounts registered with the tax office. They also enable installment payments …