- Brazil now taxes foreign digital service providers supplying Brazilian customers under Decree No. 12,955/2026, with key compliance rules effective August 1, 2026.
- Covered services include streaming, downloadable content, cloud/SaaS, online advertising, and digital marketplace services; tax is based on where the service is consumed.
- Foreign providers must register with the Brazilian tax authority and obtain a CNPJ, with no minimum sales threshold; local representation is optional.
- They may need to issue Brazilian electronic invoices and keep extensive records, with penalties possible for inconsistencies.
- The rules mainly affect B2C sales, while B2B may use reverse charge; active marketplaces may also have CBS/IBS collection duties.
Source: fiscal-requirements.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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