Brazil

Brazil VAT for digital service providers

In order to pay taxes in Brazil, the company should be registered for VAT in Brazil. However, depending on how the transaction is classified, the taxes should be collected by the local customers and/or the agent in Brazil. If this is the case, the foreign company would not be required to be registered in Brazil.

VAT rates

Names of taxes:

IPI:

ICMS:

ISS:

PIS-PASEP:

COFINS:

Late – registration penalties

The penalty for late registration for ICMS is a fine, which may vary from 1% to 80% of the value of the transactions that occurred before registration. Penalties also relate to several IPI, PIS-PASEP, COFINS and ISS errors, including failure to register.