


Brazil introducing VAT on financial services
2026-32 VAT banking, loans, insurance and financial services regime based on non-cumulative system Brazil is set to replace its vastly complex indirect tax regime with VAT in a 2026-32 phased launch. This includes implementing VAT on banking, insurance and other financial services. Brazil will be

Brazil’s split payments to combat VAT Fraud
Implementation of VAT 2026-33 include full scale split payments measure to tackle fraud Brazil’s implementation of VAT starting 1st January 2026 introduces an innovative “intelligent split payment” system designed to reduce VAT fraud and improve compliance. Under this system, payment service providers will not only

Brazil 2026-32 VAT; launch rate rises to 28%
President signs tax reform but likely rate rises to 28% from 27.5% President Lula has this week signed the tax reform laws to replace four existing and hugely complex state and federal taxes with two linked taxes which follow international standards on VAT. But the

Brazil VAT non-resident digital services providers & platforms 2026
CBS/IBS new regime brings foreign providers into tax net As part of the agreed implementation of VAT in Brazil, non-resident providers of digital services will become liable for collection of the new indirect taxes. This includes marketplaces or digital platforms acting on behalf of Brazilian

Brazil Nota Fiscal Eletrônica NF- e-invoicing update
Small businesses must adopt government Simples Nacional e-invoicing from 1 January 2023 Micro businesses using the consolidated tax Simples Nacional regime must use centralised portal (CGSN Resolution No. 169 of July 27, 2022). Simples Nacional enables a single reporting for a host of Brazilian taxes,

Brazil caps ICMS on fuel, electricity and public transport on inflation worries
11.9% inflation prompts Brazil to limit ICMS (VAT) on range of supplies to 18%; states to challenge as unconstitutional Brazil has limited states freedom (Complementary Law 194/2022) to charge ICMS above the standard rate of 18% on a range of supplies, including Petrol and fuel

Brazil cuts IPI tax by 25% on inflation worries
Federal manufacturing indirect tax IPI discounted to curb inflation and help post-COVID Brazil has discounted by 25% its federal tax on manufacturing, IPI, Imposto sobre Produtos Industrializados. For a number of automobile vehicles, the IPI rates are reduced by 18.5%. This came into effect on 25

Brazil VAT overhaul – Senate IBS, CBS and Imposto Seletivo progress
Senate progresses three taxes to replace COFINS, PIS, IPI, ICMS and ISS indirect tax maze One of the many proposals to reform the complex Brazilian indirect tax system is set to progress this year. Senate PEC 110/2019: consolidating existing federal and state taxes into a two

Brazil uncertainty interstate B2C ICMS taxing rules
Changes to ICMS (VAT) states’ split on B2C inter-state sales in confusion The Brazilian federal government has gazetted this month a rule change on Imposto sobre Circulação de Mercadorias e Serviços ICMS (a form of VAT) on interstate sales of goods to consumers. However, Law