VAT on Digital & Electronic Services in Brazil
VAT Rates & Compliance for Digital Services in Brazil
Are digital services taxable?
Yes
VAT rate
N/A
Digital reporting requirements
N/A
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.
Disclaimer on Tax Advice
Fonoa does not provide professional tax opinions or tax management advice specific to the facts and circumstances of your business and that your use of the Specification, Site, and In addition, due to rapidly changing tax rates and regulations that require interpretation by your qualified tax professionals, you bear full responsibility to determine the applicability of the output generated by the Specification and Services and to confirm its accuracy. No professional tax opinion and advice. Fonoa does not provide professional tax opinions or tax management advice specific to the facts and circumstances of your business and that your use of the Specification, Site, and In addition, due to rapidly changing tax rates and regulations that require interpretation by your qualified tax professionals, you bear full responsibility to determine the applicability of the output generated by the Specification and Services and to confirm its accuracy.
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