- Brazil’s consumption tax reform in 2023 introduced a VAT system, simplifying tax treatment and creating national uniformity.
- The reform impacts industries reliant on current tax laws, notably affecting agribusiness.
- Agribusiness previously benefited from tax reductions and exemptions, such as reduced state VAT and zero rates on certain products.
- The new VATs (IBS and CBS) aim for uniform tax treatment, raising concerns about increased tax burdens for agribusiness.
- Concessions were made for agribusiness, including reduced tax rates for specific products and zero rates for basic food items.
- Simplified tax compliance was introduced for rural producers with revenue under BRL3.6 million, exempting them from being IBS and CBS taxpayers.
Source: internationaltaxreview.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.
Latest Posts in "Brazil"
- Brazil Proposes 7% Levy on Large Digital Platforms’ Turnover from User Data and Ads
- FINTUA Global VAT Guide for September 2025
- Brazil’s Tax Reform: Simplifying System with Dual VAT, Addressing Short-Term Transition Challenges
- Modulation of ICMS Ruling Applies from 2024, Exempting Intra-Company Transfers Across States
- Brazil’s National E-Invoice Standard: Streamlining Compliance and Revenue Control by January 2026
