- Brazil is planning a major reform of its VAT regime and digital requirements for businesses.
- The proposed reform includes a new dual VAT system and a unified system for issuing tax documents.
- The new dual VAT system will combine the state VAT and service tax into one tax on goods and services, administered by the states and municipalities.
- Contributions from the state on gross revenues will be merged into a single contribution on goods and services, administered by the federal government.
- The new taxes will cover more goods and services, including goods sold to overseas consumers via online marketplaces.
- Concessions have been confirmed, including reduced rates for education, public transport, medical implements, agricultural products, and certain goods.
- The implementation of the new VAT system is expected to take place over a period of seven years.
- Updates to e-invoicing will simplify the way electronic tax documents are issued, consolidate tax payments, centralize tax records, and use e-invoicing data to calculate taxes and generate pre-filled tax returns.
- Businesses trading in or with Brazil will be affected by the VAT reform and new e-invoicing measures.
- Automation of tax determination and application is recommended for seamless compliance with updated VAT rates and rules.
- Prioritizing master data is important for generating complete and compliant e-invoices.
Source: nasdaq.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
