Additional validation rules to be used for calculating amount of the new indirect taxes
The government on December 6, 2024, published an updated version of Technical Note NT 2024.002 to incorporate additional validation rules, which will be used for calculating the amount of the new indirect taxes (CBS and IBS) due monthly.
Brazil’s Congress is currently debating a major tax reform to introduce the new dual value added tax (VAT) regime under the tax reform bill. Under the tax reform bill, Brazil would enact the following harmonized (federal and state) taxes:
To prepare for the reform, the Brazilian government has circulated the initial set of changes associated to electronic invoices (e-invoices) for goods issued by local taxpayers. The initial version of Technical Note NT 2024.002 outlined new groups of fields that will be required to be informed in the e-invoices of goods (NF-e model 55) and e-invoice of goods to final consumer (NFC-e model 65). Read TaxNewsFlash
The update includes a new tax code (CST in Portuguese) for CBS, IBS and IS (selective tax). While the use of CST codes is widely known by Brazilian taxpayers under the current indirect tax system (e.g., PIS, COFINS, IPI, and ICMS), the new set of values for CBS, IBS, and IS brings a reformulated pattern, providing additional details and a more objective determination on how each item in the e-invoice will be taxed by the new tax types.
Regarding the expected timeline for the implementation of the changes, dates remained unchanged, and will be as follows:
Since the Brazilian Congress is still debating the outlines of the new indirect tax systems, it is likely that the government will further update Technical Notes NT 2024.002 to align it with the additional mandates yet to be published or other technical issues considered by the tax authorities to adapt the Brazilian e-invoicing system to the new indirect tax reform.
For further information, contact a KPMG tax professional:
Paula Pignatti Smith | ppsmith@kpmg.com
Atila Vaccaro Pidoni Mota | atilamota@kpmg.com