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This guide provides an overview of VAT (Value Added Tax) in Brazil, including ICMS, IPI, PIS, and COFINS, covering applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is intended for businesses engaged in transactions within Brazil or with Brazilian customers.
Brazil’s tax system is unique, with VAT administered at both the federal and state levels. Key taxes include: • ICMS (State Tax): Applied to the sale of goods and provision of services. • IPI (Federal Tax): Imposed on industrial products. • ISS (Municipal Tax): Tax on Services • PIS and COFINS (Federal Contributions): Levied on revenue from goods and services.
Brazilian Real (BRL)
CNPJ followed by 14 digits (e.g., 12.345.678/0001-95)
Yes, required for non-resident businesses engaged in taxable transactions within Brazil.
No, registration is mandatory for businesses involved in taxable activities.
| Rate | Description |
| 17-25% | Standard rate, varies by state, applicable to most goods and services. some products attract a lower/higher rate |
| 4%;7% or 12% | Interstate rate on imported goods. Dependent on origin and destination states. |
| Business Type | VAT Registration Requirement |
| Resident Businesses | Mandatory registration for all companies trading in Brazil |
| Non-Resident Businesses | Mandatory registration for any taxable activity in Brazil |
| Frequency | Filing Deadline | Payment Deadline |
| Monthly | By the 20th day of the following month. | By the 20th day of the following month |
| Exact deadlines may vary depending on the specific tax, the taxpayer’s location and the sector or type of business | ||
| VAT on Cross-Border Electronically Supplied Services | No |
| VAT Rate on Digital Services | N/A |
| Threshold for Registration | N/A |
Brazil mandates e-invoicing for domestic and international transactions via the SEFAZ (Secretaria da Fazenda) system. Here are the different types of electronic invoicing for various services:
Brazil requires digital reporting for VAT-related transactions. Businesses must report transactional data via the Public Digital Bookkeeping System (SPED) to ensure compliance with tax regulations.
Disclaimer: This guide is for informational purposes only and may not cover all aspects of Brazilian VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
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| 5 | Cait | South Africa | 92 % |
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| 10 | Bronwynm | South Africa | 75 % |
