The taxpayers in the lawsuits argued that ISS (municipal tax on services), but not ICMS, should apply to the licensing or the right to use software in case of use licensing. The STF minister responsible for the case, Minister Dias Toffoli, stated during the hearing that “the simple fact that the services for licensing and assigning the right to use a computer program are defined in Complementary Law No. 116/2003 as being subject to ISS, in theory, subjects values related to software exclusively to ISS, removing any possibility of ICMS taxation.”
Source: Deloitte
Latest Posts in "Brazil"
- Brazil’s Dual VAT Reform: Simplifying Taxes, Boosting Equity, and Reshaping Business from 2023 to 2033
- Brazil Mandates Electronic Tax Domicile for All Companies Starting January 2026
- OECD Analysis of Brazil’s Shift to a Dual VAT System: Challenges, Solutions, and Transition
- Brazil Delays NFC-e Ban for B2B Sales to January 2026, Extending Transition Period
- OECD: The reform of Brazil’s consumption tax system
