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Brazilian tax reform converts five local taxes into two international VAT taxes

20 July 2023
Brazil

PEC 45/2019 provides for replacing five taxes with two international standard value-added taxes (VAT) with uniform legislation that is simpler and more homogeneous.   The reform promises to put an end to the collection of taxes over taxes, a practice that makes the production chain more expensive, raises the price of products and hinders the competitiveness of the Brazilian economy.   The five taxes to be replaced are listed below: Three federal taxes Programas de integração social (PIS) Contribuição para o financiamento da seguridade social (Cofins) and Imposto sobre Produtos Industrializados (IPI) Further federal tax Imposto sobre circulação de mercadorias...