- Brazil has introduced Decree No. 12,955/2026, establishing VAT-style rules for digital services under the new CBS tax regime.
- The decree adopts a destination-based tax model, taxing digital services where they are consumed, and applies to a broad range of digital services.
- Non-resident suppliers providing digital services to Brazilian consumers must register, charge, and remit CBS, with B2B transactions generally using a reverse charge mechanism.
- Platform economy rules make digital platforms liable for collecting and remitting CBS when they facilitate and process payments for digital services.
- Both federal (CBS) and subnational (IBS) VAT components will apply, with a central mechanism for collection and distribution.
Source: globalvatcompliance.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’s New VAT Rules: Foreign Digital Service Providers Face Expanded Tax and Compliance Obligations
- Brazil Indirect Tax Reform: Key Impacts for Nonresident Sellers and Digital Platforms Serving Brazilian Customers
- Brazil Changes NF‑e Rules: 90‑Day Confirmation Deadline and New DANFE Formats
- Brazil Introduces Destination-Based VAT on Digital Services, Targeting Non-Resident Providers and Marketplaces
- Brazil Issues First Detailed VAT Regulations, Marking Key Step in Indirect Tax Reform Implementation
