- Brazil is set to launch a new VAT regime, with a likely minimum rate of 25.45% based on a VAT Gap of 10%, according to the Finance Minister.
- The new VAT will be composed of CBS, replacing federal consumption taxes, and IBS, replacing state and municipal taxes.
- The lower house of parliament has agreed to the implementation of the new taxes, which will include reduced and zero rates, plus exemptions.
- The proposal now moves to the Senate for voting and acceptance, changes or rejection. The headline rate may hit 28% following inclusion of the discounts.
Source vatcalc
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