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
