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Brazil 3% Digital Services Tax proposal

  • Aug 24, 2020 | Richard Asquith

A further turnover tax on digital services, Digital Services Tax, is being considered in Brazil. This would be a 3% levy on advertising and other data services. The model follows similar European Union proposals. Aside from the low-tax rates enjoyed by non-resident digital services providers, Brazil is concerned for falling tax revenues during the COVID crisis from other tax sources.

See Avalara’s global Digital Service Tax tracker to find out what other countries are doing.

The Chamber of Deputies is reviewing the digital levy, Contribuição Social sobre Serviços Digitais, on the following services of resident and non-resident provider:

  • Intermediary services between buyers and sellers of goods or digital services;
  • Advertising services; and 
  • Sale and transmission of user data

The Brazilian Senate is also looking at a COFINS digital services tax for 10.6%.

Explore more content like this in our Building for COVID-19 recovery hub

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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