- Ministry of Finance submitted draft legislation on VAT reform to Chamber of Deputies on 30 April 2024
- New indirect tax system established by constitutional amendment in December 2023
- Dual VAT system created, including federal VAT (CBS) and state/municipal VAT (IBS)
- New federal excise tax (IS) created for goods/services harmful to health/environment
- New system to replace current system by 2033, with implementation starting in 2026
- Key aspects of draft legislation include VAT on goods/services, liability for foreign suppliers, destination-based collection, split payments, and specific regimes for certain sectors
- Chamber of Deputies to analyze draft legislation by mid-July, followed by issuance of ordinary laws and regulations
- Further draft legislation to be submitted on regulation of joint IBS management committee and IBS litigation.
Source: taxathand.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.
