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Brazil simplifies interstate VAT on imports

  • VAT
  • 04 March 2013 | Richard Asquith

Brazil simplifies interstate VAT on imports

From 1 May 2013, a unified regime for trading goods between Brazilian states following importation is to be introduced. The aim is to reduce the levels of double taxation on goods’ movements across state lines.

Brazilian VAT ICMS (Imposto sobre a Circulação de Mercadorias e Serviços) is currently charged at between 7% and 12%, depending on the nature of the goods being moved across state borders. This will now be simplified to a single 4% rate.

This new regime applies to most goods, including goods to be processed provided the processing does no increase the value by more than 2.5 times.


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 this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.