Brazil Vat Calculator

Brazil does not have a single VAT system. Instead, it uses multiple indirect taxes such as ICMS, ISS, PIS, and COFINS.

ICMS (Imposto sobre Circulação de Mercadorias e Serviços) is a value-added tax on goods and certain services levied by Brazilian states.

The standard ICMS rate varies by state but typically ranges from 17% to 18%.

ISS (Imposto Sobre Serviços) is a municipal tax levied on services provided within Brazil, usually ranging from 2% to 5%.

PIS and COFINS are federal taxes applied to revenue from the sale of goods and services, usually at combined rates between 3.65% and 9.25%.

Businesses that sell goods or provide taxable services in Brazil are required to pay ICMS or ISS depending on the nature of their operations.

No, exports are generally exempt from ICMS, ISS, PIS, and COFINS to encourage international trade.

Businesses may be able to claim credits for ICMS paid on inputs, depending on the specific tax regime and type of goods or services.

Yes, digital services are subject to ISS and potentially other taxes depending on the municipality and federal rules.

Yes, consumer prices typically include VAT (ICMS or ISS) in Brazil.

VAT is calculated as a percentage of the sale price. The applicable tax rate (ICMS, ISS, etc.) is applied to determine the VAT amount.

There is no universal VAT threshold, but small businesses may fall under simplified tax regimes like Simples Nacional.

Yes, if a foreign company provides taxable goods or services in Brazil, it may be liable for local VAT obligations.

Yes, imported goods are subject to ICMS and other import-related taxes in Brazil.

No, Brazil currently does not offer a VAT refund program for foreign tourists.