|VAT Rate on Digital Services||VAT on Cross-Border Electronically Supplied Services||Digital Reporting Requirements for Foreign Sellers Providing Electronically Supplied Services|
Tax on Cross-Border Digital Services in Brazil
Brazil has not yet introduced VAT on B2C cross-border services supplied by foreign service providers to final customers (customers who are not registered for VAT in Brazil and are not identified by a valid VAT number).
The Brazilian Government had some initiatives that aimed to capture uncollected indirect taxes, e.g., introducing a new, flat-rate tax called Contribution on Goods and Services (CBS) or introducing digital ICMS on B2C transactions in the customers’ state; however, there are currently no specific rules in place to tax cross-border digital services in Brazil.
Income Withholding Tax
Payments to non-resident businesses may be subject to IRRF (Imposto de Renda Retido na Fonte), CIDE (Contribuições de Intervenção no Domínio Econômico), PIS/COFINS, and ISS, depending on the transaction’s classification.