BR State Value-Added Tax (ICMS) Rates Brazil — State Value-Added Tax (ICMS)

General VAT Rate Other Rates Local Currency
42% NA Real (BRL)

Brazil's general VAT rate is 42%, with other rates including NA that can apply to certain transactions. The State Value-Added Tax (ICMS) is administered by the Ministry of Finance (http://www.fazenda.gov.br) in Brasília.

Brazil has a highly complicated VAT tax system, with multiple levels of tax that can be as high as 42% when combined. The major consumption taxes are as follows:

IPI: 0%–365% (Imposto sobre produtos industrializados, or "Tax over industrialized products", a Federal level tax
ICMS: 0%–35% (Imposto sobre circulação e serviços, or "Tax over commercialization and services", a State level tax
ISS: 0%–5% (Imposto sobre serviço de qualquer natureza, or "Tax over any service", a City level tax
PIS-PASEP: 0.65%, 1.65% (Federal-level gross revenue tax)
COFINS: 3%, 7.6%.

Brazil is a member of the Mercosur Member trading bloc, which may affect international VAT collection and regulations.

Consumption Taxes in Brazil

Brazil has multiple consumption taxes, which apply in different situations depending on what purchase is being made. These taxes include the following:

State Value-Added Tax (ICMS)

Federal Value-Added Tax (IPI)

Municipal Service Tax (ISS)

Federal Gross Receipt Contributions (PIS-PASEP/ COFINS)

Local names

Imposto sobre circulação de mercadorias e serviços (ICMS)

Imposto sobre produtos industrializados (IPI)

Imposto sobre serviços (ISS)

Contribuição para os programas de integração social e de formação do patrimônio público (PIS-PASEP)

Contribuição para o financiamento da seguridade social (COFINS)

These taxes were introduced in Brazil at the following times:

ICMS
1989
IPI
1964
ISS
1968
PIS-PASEP
1970
COFINS
1991

(http://www.receita.fazenda. gov.br)


Brazil VAT rates for 2017

ICMS
0% to 35% (for supplies in the same state)

4%, 7% or 12% (for supplies made to a taxable person in a different state)

IPI
0% to 365% (depending on the IPI tariff table classification for the goods)
ISS
0% to 5% (depending on municipality and nature of service)
PIS-PASEP
0.65% (for taxpayers taxed under the deemed corporate income tax method of calculation, under the cumulative system) 1.65% (for taxpayers taxed under the annual actual income tax method, under the non-cumulative system)
COFINS
3% (for taxpayers taxed under the deemed corporate income tax method of calculation, under the cumulative system) 7.6% (for taxpayers taxed under the annual actual income tax method, under the non-cumulative system)

Brazil VAT number format

Businesses in Brazil that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Ministry of Finance, and will follow a certain format. The VAT number format is nn.nnn.nnn/nnnn-nn (this ID serves in all tax matters).

ICMS, ISS,
See section headings

PIS-PASEP, COFINS:


Brazil State Value-Added Tax (ICMS) Thresholds

These are the revenue thresholds at which businesses in Brazil are required to start collecting and remitting tax.

Registration :

ICMS, IPI and ISS
Commencement of taxable activity
PIS-PASEP/COFINS
Commencement of sales activity (including receipt of non-operational revenue, such as rent)

Brazil VAT return periods

Businesses in Brazil that are required to collect tax from consumers must file regular tax returns with the Ministry of Finance in Brasília. Brazil's VAT return periods are:

ICMS
Monthly
IPI
Monthly and every year
ISS
Monthly (depending on the municipality where the taxpayer is located)
PIS-PASEP/COFINS
Monthly

Recovery of VAT by non-established businesses

Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Brazil are not required to collect taxes from the consumer.


Brazil VAT Refunds

Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Brazil VAT refund program, more info can be obtained from the Ministry of Finance.


BR State Value-Added Tax (ICMS) Rates Brazil Tax Sources & Citations

  • EN: Brazil Value Added Tax
  • RU: НДС
  • CN: 增值税
Note: This page is intended to be a simple overview of Brazil's consumption tax structure, is provided as-is, and is not legal advice. Please let us know if any of the Brazil tax information on this page is incorrect or out of date.
Citations:
  1. Brazil Ministry of Finance (http://www.fazenda.gov.br)
  2. Ernst & Young global VAT tax study, Brazil (updated 2017)

  3. ← Back to World VAT Rates
** This Document Provided By SalesTaxHandbook **
Source: http://world.salestaxhandbook.com/br-brazil