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Brazil ICMS B2C 2016 changes

  • Nov 24, 2015 | Richard Asquith

Brazil ICMS B2C 2016 changes

From the 1 January 2016, the rules on the calculation of ICMS changes on sales of goods to consumers across Brazilian internal states.

ICMS is the Brazilian indirect tax (VAT) on the sale of goods and services. Where goods are sold across internal Brazilian state borders, ICMS is due in the state of the seller – the origin principle. Many Brazilian states have campaigned to have this switched to the state where the consumer is located – the destination principle – which is the option recommended by the OECD and favoured by the European Union and other VAT jurisdictions around the world.

From 2016, the destination principle will be phased in for B2C sales of goods and some services over 4 years, with 100% of the ICMS tax being due in the state of the consumer by 2019.  The rules apply to sales of goods and electronic services.

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 can be contacted at: 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.