- Stakeholders in Brazil have been organizing events to discuss the practical effects of the indirect tax reform
- Benefits of the reform include simplification of the tax system, equalization of tax burden, and easing administrative burdens on businesses
- Drawbacks include increased tax burden on services businesses
- The government has started announcing relevant standards and legislation for the implementation of the new tax rules
- The reform consolidates several taxes into a dual VAT, repealing five existing taxes
- The reform will be phased in over a seven-year period from 2026 through 2033
- The government has established technical committees and announced complementary legislation for the reform
- A Normative Instruction requires taxpayers benefiting from federal incentives to submit a report declaring the benefits
Source: bdo.global
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.
