- Brazilian Senate approves new federal value-added tax (VAT) legislation
- Proposed amendments sent back to lower house for approval
- Legislation establishes federal VAT (CBS) and state-level VAT (IBS)
- New VAT regime would phase out social security contributions PIS and Cofins
- CBS would have a 12% rate for companies and a 5.9% rate for financial institutions
- Small businesses, religious organizations, and non-profit companies would be excluded from collecting the levy
- Basic commodities would be excluded from the scope of the VAT
- Local tax IBS and a new “selective tax” would replace other taxes such as IPI, PIS, Cofins, ICMS, and ISS.
Source: answerconnect.cch.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.
