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WINNERS & LOOSERS of the TAX REFORM in BRAZIL: In general, sectors linked to the provision of services, because these are sectors that take on little credit and end up not generating tax credits. Segments linked to the digital economy, e-commerce, software and technology companies will tend to see an increase in their tax burden. What we cannot answer at this moment is whether there will be an increase in taxes for large industries, due to some specific factors. In general, large industries today pay 18% ICMS tax and 9% PIS tax, which adds up to 27%, while VAT will be a maximum of 26.5% (source: BNamericas).

WINNERS & LOOSERS of the TAX REFORM in BRAZIL: In general, sectors linked to the provision of services will see an increase in the tax burden, because these are sectors that take on little credit and end up not generating tax credits. Segments linked to the digital economy, e-commerce, software and technology companies will tend to see an increase in their tax burden. What we cannot answer at this moment is whether there will be an increase in taxes for large industries, due to some specific factors. In general, large industries today pay 18% ICMS tax and 9% PIS tax, which adds up to 27%, while VAT will be a maximum of 26.5% (source: BNamericas).

🚨 📣 Tax Alert: Brazil- Dual VAT Tax System 📣 🚨 ❗ Attention businesses operating in Brazil – are you ready for a tax overhaul? Brazil is set to transform its tax landscape with a new dual VAT system. Planning ahead would be a prudent approach. Get in touch with Vistra Brazil Team to see how we can help. #vistrabrazil #braziltaxreform #vistra #BrazilDualVATTaxSystem

ViDA aims to modernize VAT regulations, particularly in the digital realm, fostering smoother and more efficient interactions within the EU business landscape. Understanding and keeping updated of ViDA is crucial for businesses to thrive in this evolving regulatory environment. #PageroCompliance #vida

When discussing ViDA, E-invoicing often dominates the conversation. However, it's essential to consider other ViDA requirements that could affect your business, such as Digital Reporting Requirements. Furthermore, while your current E-invoice implementation may comply with local mandates, it's important to anticipate potential changes when all countries must align with ViDA requirements. Having trouble grasping ViDA's requirements and how they'll impact your business? Dive into our comprehensive ViDA guide below for clarity and insights.

#VerifiedbyGS1 is helping the Brazil Tax Authority (#SEFAZ) make e-invoicing easier and more accurate, reducing uncertainty for Brazil’s businesses. Learn how verification adds value https://bit.ly/49CCVdI

We would like to share with you the article written by our Managing Partner, Atty. Euney Marie Mata Perez, FICD, CPA, JD, entitled, “Proposed New VAT on Digital Services" which was published in the More to Follow column in the Business Section of The Manila Times on May 23, 2024. "The author discusses Senate Bill (SB) No. 2528, which the Senate approved on third reading. SB 2528 proposes to impose a 12% value-added tax (VAT) on suppliers of digital services and to amend the National Internal Revenue Code, as amended, to expressly include ‘digital services’ and ‘digital service providers’ among the transactions and entities subject to VAT. The VAT is due whether the digital service provider is a resident or nonresident, i.e., one without any physical presence in the Philippines." Read more: https://lnkd.in/gSYEw9TS Should you have questions on the above article, please do not hesitate to contact us at info@mtfcounsel.com. #VATdigitalservices #VATphilippines #valueaddedtax #BIRVAT #VATBIR #digitalserviceprovider #digitalservices #digitalserviceproviderphilippines #digitalservicesphilippines

🌐 Navigating VAT Compliance for Digital Services in Latin America While LATAM countries are often seen as a unified region, their VAT collection methods for digital services vary. Some countries require foreign sellers to register and comply with local tax laws. Others use payment intermediaries to withhold VAT during transactions. Over time, a hybrid model combining both approaches has become the most prevalent method for ensuring VAT compliance. It’s essential for foreign sellers to understand these diverse VAT frameworks and stay updated on regulatory changes, such as Brazil's ongoing tax reform. My latest Forbes article offers a deeper dive into LATAM’s VAT systems. https://lnkd.in/eTVCe3nQ

#Canada: Revenue Agency releases new guidance on digital platform reporting rules, detailing requirements for operators and reportable sellers. Read more:https://lnkd.in/eSqUsuMP Follow us for the latest VAT updates. #vatcompliance #taxlaws #vat #GlobalVATCompliance

According to recent ECJ decision (C-60/23, Digital Charging Solutions GmbH) charging an #E_vehicle at a charging station - which generally involves three parties (party A: main supplier/EE producer or network operator; party B: intermediary/CPO giving access to the network, party C: customer/e-driver using the network to get the vehicle recharged) - implies that there are two consecutive supplies of goods: the first between A and B and the second between B and C only when B is acting under a commissionaire model/contract within the meaning of art. 14(2)(c) of the EU VAT Directive 2006/112/Ec. The Italian Tax Authorities tend to apply the VAT "fictio iuris" of art. 14(2)(c) when there is an undisclosed agency model according to the Italian Civil Code (art. 1703). Indeed, in the Italian Tax Authorities guidelines and rulings, generally the Tax Authorities confirm the application of the VAT "fictio iuris" when there is an underlying agreement/contract between the parties showing that the commissionaire is acting in its name and on behalf of the principal. Therefore, in my view, in order to reflect the above-mentioned ECJ approach to the Italian context it is not sufficient just that three parties are involved in the supply-chain to have the two supplies of goods but it should be also necessary to have enough evidence (i.e. contracts, general terms and conditions, web/app instructions, etc.) supporting that the willing of the parties is indeed to operate under a commissionaire model.