- 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.
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