Brazil may block ICMS on e-services

Brazil’s Chamber of Deputies is reviewing blocking the new ICMS  (Imposto Sobre Operações Relativas à Circulação de Mercadorias e Serviços de Transporte Interestadual de Intermunicipal e de Comunicações) charge on digital and electronic services.

ICMS has recently been levied on the supply to consumers of digital goods via downloading or streaming. This includes: music; video; games; apps; software; e-books; and membership to online clubs. These services are already subject to ISS, Imposto Sobre Servicos, and it is this double taxation that is being reviewed.

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