Tax Reform and VAT Implementation in Brazil – October 5, 2023

Brazil’s tax reform represents a milestone achievement.  While estimates are imprecise and actual results will depend on conditions at the time, the reform could potentially boost GDP from its current sub-2% trend to closer to 4%. The new regime consolidates five different federal, state, and municipal taxes, which were previously subject, in addition to federal rules, to 27 different state-level and 5,600 municipal-specific legislations, numerous exemptions, incentives, and sector-specific credits. These taxes were charged cumulatively, with taxes due upon taxes, and paid at the point of production. The new regime replaces this with a non-cumulative dual VAT charge, paid upon consumption of the goods / services, with three rates: federal, state, and municipal.  To maintain the same level of tax revenue, the combined rate will be high (at least 25%) and may increase depending on costly exemptions being discussed in Congress. Conditions are favorable for the constitutional amendment to be approved in 2023, with additional laws detailing important components needing approval in 2024. The transition for taxpayers will take a decade to complete. But for a proposal that has been in the making for four decades, this is a remarkable achievement.

The Chamber has gathered a panel of experts to discuss Brazil’s VAT reform and its impacts on the legal environment, entrepreneurial expectations, and growth. Please join us for this informative and timely program.

Introductory Remarks:

Paulo Vieira da Cunha, Partner, VERBANK Consulting, LLC

Speakers: 

Vinicius Jucá, Professor, Fundação Getúlio Vargas (FGV); Tax Partner, Lefosse

Melina Rocha, Course Director, York University – Canada; VAT/GST International Consultant; Consultant, Inter-American Development Bank

Sponsored by: Lefosse

Registration information:

Members: Free
Non-Members: $25

Format: in-person only

Location:

Brazilian-American Chamber of Commerce
485 Madison Avenue, Suite 401, New York, NY, 10022