Blog > Blog > VAT > Brazil VAT/IPI exclusive of discounts - Avalara

Brazil VAT/IPI exclusive of discounts

  • VAT
  • 12 September 2014 | Richard Asquith

Brazil VAT/IPI exclusive of discounts

Brazil is to follow common Value Indirect Tax practise and exclude unconditionsl discounts from the calculation of indirect tax on manufacturing, Impostos sobre Produtos Industrializados (IPI).

Brazilian IPI rates vary from 0% to over 300%, depending on the products.

The Supreme Court of Brazil this month concluded that the Brazilian VAT / IPI calculation should exclude discounts, and not be based on the retail price. This follows EU VAT Directive law, and the common practice in the rest of the world where VAT or Goods & Services Tax are operated.


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.