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country-icon Brésilien

04.20.24

Consumption tax approval

Tungsten Automation has analysed the complexities of the tax regime in Brazil. Given the intricacies associated with the fiscal infrastructure in Brazil, the presiding government has been striving for some time to create a fiscal construction that is streamlined, efficient and ultimately simple to navigate.

Brazil has now approved the so-called ‘consumption tax’ that endeavours to implement these objectives.

The new regime will establish a VAT structure, simplify tax laws and reduce the number of taxes.

The scale of change is significant. To allow for this, reforms will commence in 2026, with a transitional period until 2032. Such reforms are projected to have wide-reaching implications, with the fiscal model expected to bring Brazil in line with a more international standard with the imposition of VAT.

The reforms will trigger an exciting period of fiscal transition in Brazil. Tungsten Automation will follow developments.

You can read more about e-invoicing in Brazil here.

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