Sales Tax Rate in Brazil is expected to be 17.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Brazil Sales Tax Rate - VAT is projected to trend around 17.00 percent in 2020, according to our econometric models.
Brazil Sales Tax Rate - VAT
Brazil operates a multiple rate system with ICMS (Imposto de Circulação de Mercadorias e Serviços) tax levied at a state level. The standard rate of ICMS is 17 percent (18 percent in São Paulo, Minas Gerais and Paraná and 19 percent in Rio de Janeiro). Intrastate transactions are taxed between 17 and 19 percent, interstate transactions are taxed at 7 percent or 12 percent, and most imported goods are taxed at a rate between 18 percent and 25 percent. Some states offer rate reductions or later payment dates as a fiscal incentive for the installation of factories.