On 24 February 2021, the Brazilian Supreme Court (“STF“) finalized the trial of Direct Unconstitutionality Actions 1,495 and 5,659, which addressed whether software-related transactions should be imposed with municipal service tax (“ISS“) or VAT state tax (“ICMS“).
After garnering a majority of votes, STF decided to exclusively levy ISS to such transactions, regardless of the form of commercialization and type of software (if off-the-shelf or customized).
Source Baker & McKenzie
Latest Posts in "Brazil"
- Overview of NF-e and NFC-e: Legal Background, Technical Architecture, and Fiscal Document Standards
- Brazil’s New Tax Era: Software-Driven Fiscalization and Compliance Challenges for Retailers
- Brazil Unifies Five Taxes Into Dual VAT, Modernising System and Cutting Compliance Costs by 60%
- Brazil’s Tax Reform: New CBS/IBS Rules for Non-Resident Digital Suppliers from 2026
- Q&A Highlights: Key Fiscalization Questions from “Brazil Enters a New Era” Webinar
