- Brazil approved a comprehensive tax reform in 2023, replacing five existing consumption taxes with a dual VAT system: the federal CBS and the subnational IBS.
- The reform aims to simplify the tax system, broaden the tax base, and create a unified legal framework.
- Implementation will occur gradually from 2026 to 2033, with old taxes phased out and new systems phased in.
- Businesses will face increased complexity during the transition but are expected to benefit from administrative simplification in the long term.
- The reform introduces a cashback mechanism for low-income families and requires non-resident digital platforms to register and pay taxes in Brazil.
Source: vatabout.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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