- Brazil is set to launch a new VAT regime, with a likely minimum rate of 25.45% based on a VAT Gap of 10%, according to the Finance Minister.
- The new VAT will be composed of CBS, replacing federal consumption taxes, and IBS, replacing state and municipal taxes.
- The lower house of parliament has agreed to the implementation of the new taxes, which will include reduced and zero rates, plus exemptions.
- The proposal now moves to the Senate for voting and acceptance, changes or rejection. The headline rate may hit 28% following inclusion of the discounts.
Source vatcalc
Latest Posts in "Brazil"
- STJ: Non-recoverable IPI Excluded from PIS/COFINS Credits for Goods Acquired After Dec 2022
- Brazil Imposes 12% Export Tax on Crude Oil, 50% on Diesel Starting March 2026
- Brazil to Adopt Alphanumeric CNPJ Format in July 2026, Requiring Major System Updates
- Brazil Updates NF‑e Validation Rules and XML Layout for Agricultural, Livestock and Forestry Products
- Advance Payments Are Now Taxable
