OECD International VAT/GST Guidelines: Is Brazil Ready?

Journal
Piscitelli, T.
Brazil
International VAT Monitor 2019 (Volume 30), No. 4
FormatPDF
EUR
40
| USD
45
(VAT excl.)

In this article, the author assesses whether Brazil is prepared to adhere to the OECD recommendations on indirect taxation of the digital economy. The author starts with a short description of the OECD International VAT/GST Guidelines in order to compare them with the peculiar Brazilian tax system, which does not limit the consumption taxation to a single tax. The federative structure created by the Brazilian Constitution allows states to tax goods and municipalities to tax services, which has been a major cause of severe internal dispute and double taxation. The digitalization of the economy and the approximation of the concepts of services and goods impose the need to reflect on the adherence of this model to the general principles of the OECD’s Guidelines.