VAT exemption on interest after law modification for credit operations: Scope and implications

• Consultation on the scope of VAT exemption for interest resulting from modifications to the Law No. 18.010 on credit operations
• Modifications to the law do not change the VAT exemption for interest from credit operations
• Interest is understood for tax purposes as any amount received by the creditor above the capital
• Commissions classified according to CMF instructions can qualify for VAT exemption if considered part of the interest of a credit operation
• Other commissions charged by banks and financial institutions to clients for services will be subject to VAT

Source: assets.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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