Standard VAT rate: 17-19%
Real-time reporting: mandatory
Digital service tax: no
Brazilian VAT number contains 8 digits, a 4-digit radical, and 2 check digits (i.e. 0.123.4567/8901-23)
The standard VAT rate in Brazil is from 17-19%, depending on the state, with reduced rates from 4-12% for interstate movement of goods.
17% (Standard) – applies to all taxable supplies in the following states: Acre, Alagoas, Ceará, Espírito Santo, Goiás, Mato Grosso, Mato Grosso do Sul, Pará, Piauí, Rondônia, Roraima and Santa Catarina.
18% (Standard) – applies to all taxable supplies in the following states: Amazonas, Amapá, Bahia, Distrito Federal, Maranhão, Minas Gerais, Paraíba, Paraná, Pernambuco, Rio Grande do Norte, Rio Grande do Sul, São Paulo, Sergipe, and the Tocantins
19% (Standard) – applies to all taxable supplies in the following state: Rio de Janeiro
4%, 7% or 12% (Reduced) – applies on interstate movement of goods depending on the state of destination
All businesses with Brazilian VAT number (domestic established companies) must submit periodic payments.
VAT Returns frequency
For all companies that operate in Brazil, VAT returns must be submitted on a monthly basis.
In case of the late filing of VAT returns and payments, the Brazilian government prescribed the penalty from 1% to 150% of the tax due. The regular penalty is 75% of the tax due.
The main fields that must be filled in the NFe are:
As one of the strongest countries in the world and the strongest in LATAM, Brazil introduced mandatory e-invoicing and mandatory electronic document transmission.
At this moment, there are three (3) electronic documents that are mandatory in Brazil:
As already mentioned, the most important e-invoicing document in B2C relationships is NF (Nota Fiscal).
According to the mandatory electronic invoicing model, Brazilian Tax Authorities (SEFAZ) must validate an invoice before a supplier sends it to a customer. There is an overview of the real-time reporting process and how does it work: