Brazil Introduces Dual VAT System Impacting Non-Resident Digital Platforms and Service Providers

• Brazil is introducing a Dual VAT system to simplify its complex tax framework.
• Constitutional Amendment No. 132/2023 and Complementary Law No. 214/2025 establish this system.
• The new system replaces five traditional taxes with CBS and IBS.
• Foreign digital platform operators will have VAT liabilities.
• The reform simplifies tax collection and extends the scope of liable taxpayers.
• Non-resident digital platforms and service providers will be liable for CBS and IBS.
• Digital platform operators may be deemed suppliers responsible for tax collection.
• Non-resident digital service providers may be exempt if platforms collect VAT.
• Platform operators must provide detailed reports about registered users.
• Overseas digital platforms need to adjust pricing, compliance, and risk management.
• VAT on cross-border digital services may lead to higher prices.
• The new VAT framework aligns with OECD best practices.

Source: 1stopvat.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.

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