Tax Clipping | Stay Up to Date with the Highlights

The latest edition of the BVZ Tax Bulletin brings together key developments in the implementation of Brazil’s Tax Reform, as well as administrative, judicial, and regulatory discussions with a direct impact on tax obligations, tax litigation, and international trade.

Tax Reform
– A new milestone in the consumption tax reform will take effect on August 3, making it mandatory to complete the fields related to IBS (Tax on Goods and Services) and CBS (Contribution on Goods and Services) in electronic tax documents.
– The implementation of IBS and CBS is expected to begin while judicial jurisdiction over related disputes remains undefined, potentially increasing discussions regarding legal certainty and tax litigation.
– The Federal Court of Accounts (TCU) has issued urgent regulations governing the review and approval process for the calculation methodology and reference rates applicable to IBS and CBS.

Tax Settlement
– The Superior Court of Justice (STJ) is reassessing whether the execution of a tax settlement agreement may release a guarantor bank from obligations secured by a bank guarantee.

Tax Updates
– The Brazilian Federal Revenue Service has launched a public consultation on a proposed Normative Instruction aimed at consolidating regulations governing customs clearance procedures for imports.
– The Federal Revenue Service has announced a special batch of automatic Individual Income Tax (IRPF) refunds for taxpayers not required to file a tax return.
– The Federal Supreme Court (STF) is reviewing, under the general repercussion mechanism, the right to claim ICMS tax credits on intermediate materials used in the production process.
– The Superior Court of Justice (STJ) has ruled that ICMS-Difal on interstate transactions destined for a taxpayer end consumer was already due under the provisions of the Kandir Law.

Access the full edition for further information.