- Brazil’s Federal Revenue has established working groups to discuss the administration of the new federal value-added tax.
- Legislation pending before the Senate would establish a federal value-added tax (CBS) and a state-level VAT (IBS).
- The new VAT regime would phase out social security contributions PIS and Cofins.
- CBS would have a 12 percent rate for companies and a 5.9 percent rate for financial institutions.
- Small businesses, religious organizations, non-profit companies, and basic commodities would be excluded from collecting the levy.
- IBS and a new “selective tax” would replace IPI, PIS, Cofins, ICMS, and ISS.
- The Federal Revenue has published a program to deal with implementation issues and ensure readiness by 2025 for CBS implementation in 2026.
- The program includes dialogue with representatives of states and municipalities to integrate proposed solutions with IBS.
Source: answerconnect.cch.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.
