- Brazil will implement a new VAT system with an “intelligent split payment” mechanism starting January 1, 2026.
- Split Payments will be reported through the existing electronic DF-e system.
- Pilot testing for the new mechanism begins April 6, 2026, with full production starting April 4.
- Payment service providers will verify suppliers’ VAT credits and adjust payments accordingly, aiming to reduce fraud and cash flow issues.
Source: vatcalc.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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