- Brazil’s consumption tax system is highly complex, with multiple levels of government having the authority to levy taxes on consumption.
- The federal government imposes non-cumulative taxes on manufactured products (IPI) and social contributions (PIS/COFINS).
- States collect non-cumulative taxes on tangible goods, communication services, and transportation (ICMS).
- Municipalities levy a cumulative tax on services (ISS).
- The complexity of the tax system has led to tax competition between states and conflicts of jurisdiction among different levels of government.
Source Forbes
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