- Brazil approved PLP 108/2024, advancing indirect tax reform and establishing a dual VAT system (CBS at federal, IBS at state/municipal levels).
- The law creates the Committee for the Management of the Tax on Goods and Services (CGIBS) to oversee IBS administration, revenue distribution, and regulatory powers.
- Technical corrections and clarifications were made to ensure consistent tax treatment and legal certainty, including rules for recurring transactions and credit adjustments.
- Sector-specific rules were introduced for energy, digital platforms, real estate, financial services, and fuel, addressing compliance, tax bases, and anti-fraud measures.
- The transition to the new system starts in 2026 and will be completed by 2033.
Source: kpmg.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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