Brazilian Tax Reform (VAT)

Corporate taxation in Brazil has undergone profound transformations in recent months. Following a constitutional reform that allowed the creation of a new tax regime on consumption (Dual VAT and Selective Tax), the country created a new legal regime for transfer pricing rules, aligned with the OECD, as well as implementing its Qualified Domestic Minimum Top-Up Tax (QDMTT) within the scope of Pillar 2.
This document aims to present the current scenario of tax reform on consumption, due to the recent enactment of Complementary Law No 214, of 16 January 2025, called the General Law of IBS, CBS and Selective Tax.

March 2025