A State-by-State Guide to VAT in Brazil

Brazil has one of the most diverse and rapidly changing regulatory environments in the world. New tax laws are continuously being introduced and current laws are often amended without notice. This state-by-state guide to Brazil has been created to ensure that you never miss an update again.
State-by-state guide

This interactive map is updated continuously to help ensure you are remaining compliant in all states in which you conduct business. Scroll through the map to learn which laws may have changed.

Brazil Map Goiás São Paulo Pernambuco Acre Amazonas Maranhão Pará Rondônia Tocantins Distrito Federal Mato Grosso do Sul Minas Gerais Mato Grosso Río Grande do Sul Paraná Santa Catarina Ceará Piauí Alagoas Bahía Espírito Santo Paraíba Río de Janeiro Río Grande do Norte Sergipe Roraima Amapá
STATE INFO

Our team of dedicated regulatory experts monitor and account for all changes so that you don’t have to. We track the changes as they happen, and our interactive map is automatically updated to account for every change and nuance. We encourage you to visit this page frequently to ensure you are always following the latest laws and regulations in Brazil.

Brazil has long been considered amongst the most difficult regions to achieve tax compliance. The country represents the most diverse landscape for VAT determination of any industrialized nation. The complexity of its fiscal rules and validations are increasing by the day, evidenced by the fact that since the Federal Constitution was enacted in 1988, nearly five million tax related laws and decrees have been issued. This is an issue that is costing businesses a disproportionate amount of time, money and resources.

Value-added tax is constantly evolving, and Brazil’s complex and rapidly evolving tax codes and regulations are making it increasingly difficult for businesses to remain compliant. Many companies are turning towards VAT tax software and automation technology to reduce the burden of managing these processes.

Sovos has considerable experience in providing VAT tax solutions for companies operating in Brazil. Our team of local, regulatory experts is second to none and our cloud-based tax solutions work seamlessly with existing technology platforms such as SAP.

If keeping current with changing laws in Brazil is creating an undue burden on your organization and remaining compliant with VAT tax mandates has become more a matter of hope rather than a probability, we invite you to talk to our team of experts.

We will work with you to identify your areas of greatest exposure and design a VAT tax solution that meets the needs of your operations in Brazil and also has the capability to scale to meet the needs of your organization globally.

The continued digitization of tax has made it imperative that companies keep pace with changing regulations in real-time. Falling behind is not a viable option. If your organization could benefit from another look at your tax management processes in Brazil, take the time to talk to Sovos.

State-by-State Guide to Sales Tax Nexus Laws

There are currently more than 12,000 state and local tax jurisdictions across the 50 states. These regulations can change quickly and without notice. This guide is intended to keep sellers current on all economic nexus laws surrounding the collection of sales tax.
State-by-state guide

This interactive map is updated continuously to help ensure you are remaining compliant in all states in which you conduct business. Scroll through the map to learn which nexus tax laws may have changed.

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STATE INFO

Vendor Assessment

IDC MarketScape Names Sovos a Leader in Sales Tax and VAT Automation Applications

IDC MarketScape highlights:

IDC MarketScape Worldwide SaaS and Cloud-Enabled Sales Tax and VAT Automation Applications 2019 Vendor Assessment named Sovos a leader for our global presence and coverage, strong cloud platform, and e-invoicing compliance solution. Read the brief now.

“Sovos offers these organizations tremendous value by providing coverage for every form of transaction-level tax compliance in one solution.” –Kevin Permenter, Research Manager, IDC

Here’s what the IDC MarketScape measures:

  • Overall market evaluation and assessment of tax automation applications
  • Insights for selecting a vendor based on your organization’s requirements
  • Strengths, challenges and considerations when deploying tax automation applications
IDC MarketScape Worldwide SaaS and Cloud-Enabled Sales Tax and VAT Automation Applications 2019

Understanding State IRA Withholding Requirements

IRA withholding remitting, reporting and reconciling can be difficult for organizations to manage at a federal level, but it gets even more complicated when you add states to the mix. Each state has their own remitting and reporting frequencies, thresholds, requirements and penalty structures. Because of this, it can be hard to determine if and when state withholding is required on a state-by-state basis.

This map breaks down where IRA withholding remitting and reporting is mandatory, verses being voluntary or not required, on a state-by-state basis to help organizations understand their IRA state withholding requirements.

 

Centralizing and automating manual withholding processes has allowed organizations to improve operational efficiency by up to 92% allowing resources to focus on business critical tasks while mitigating process, compliance and security risk. Find out how Sovos can help.

Italy: Electronic Invoicing and Reporting Requirements

Seeking to close a 35 billion euro tax gap, Italy has implemented a clearance e-invoicing model for domestic transactions. Get the details in the mandate and the requirements it involves with this guide.

Automate Unclaimed Property Compliance with a Hosted Solution

Complying with regulations regarding unclaimed property is extremely complex and can quickly turn into a huge hassle for employees in tax, finance, accounting, and legal departments. Learn how an automated solution can help.

Infographic: State 1099 Reporting Deadlines

By far, the biggest challenge facing organizations during 1099 reporting season this year was state reporting. With states tightening deadlines and multiple jurisdictions and reporting thresholds to deal with, Sovos customers found state reporting more complex than any other element of reporting season.

This updated infographic shows why. The map shows 1099 reporting deadlines by earliest deadline per state. In just a few years, the vast majority of 1099 first deadlines have shifted from March to January. Combine that shift with changing thresholds for 1099-K forms and other state-specific policies, and it is clear why state reporting has become such a challenge and will likely continue to be.

 

With reporting periods shrinking, organizations need to centralize and automate reporting processes in order to maximize efficiency, ensure compliance and avoid financial penalties.
Find out how Sovos can help.

Brazil: Electronic Invoicing and Reporting Requirements

In 2008, Brazil adopted a clearance electronic invoicing model in which the country’s tax authority must receive and clear an invoice before a supplier can issue it to a payer. More than a decade later, the Brazilian tax administration’s digitization has evolved so much that other tax administrations call Brazil the Google of fiscal goods. 

Current regulations include electronic invoices for: supplies of goods (NF-e), services (NFS-e), transport services (CT-e), freight (MDF-e), SPED, REINF and, more recently, for the supply of electricity (NF3e). 

This document provides an overview of the mandates and regulations in Brazil.

Mexico: Electronic Invoicing and Reporting Requirements

Mexico is a pioneer in electronic invoicing and VAT enforcement, having begun its digitization journey in 2010. Today, Mexico has one of the most technologically advanced tax administrations in the world. Companies unaware of or unprepared for Mexican e-invoicing mandates could face significant fines and penalties, along with supply-chain disruptions and cash-flow issues. This document provides an overview of mandates and regulations in Mexico.

Blending Human Expertise and Software - VAT Managed Services

Companies around the world face growing VAT compliance obligations. Governments globally continue to look for ways to prevent fraud, increase revenue and ultimately close VAT gaps. It’s a challenge and especially as VAT requirements can be complex and fragmented across different markets. European Union countries alone lost an estimated €140 billion in VAT revenues in 2018. So it’s easy to see why governments are taking steps to reduce this.

Keeping up with VAT rates and reporting changes is daunting. For multinational companies, that complexity only intensifies. If you trade across multiple borders the associated workloads also increase.  For these reasons, companies need to ensure they have a robust compliance continuity plan in place to ensure their VAT compliance obligations are met wherever they operate.

The cost of noncompliance can be high. And errors can be caused by various reasons. These include late filings, using incorrect tax rates, misinterpretation of the regulations or simply due to human error.  Whatever the cause, the repercussions can be costly leading to loss of VAT deductions, invasive and time consuming audits and other financial penalties and reputational damage.

As the challenges and complexities of VAT compliance continue to rise, more companies are realising the benefits of embracing a managed service approach to all or part of their VAT compliance obligations.

Download the Product Brochure.

Technology enabled VAT Managed Services

Ease your compliance workload reducing risk wherever you trade

Sovos VAT Managed Services is a blend of human expertise and software. Our multi-lingual team of VAT experts use our proprietary software which is updated as and when VAT regulations change. Our team is your team. In addition, our global regulatory specialists monitor all regulatory changes, so you don’t have to. Allowing you more time to focus on your business.

Sovos VAT Managed Services takes care of your compliance for both periodic and continuous reporting obligations. This applies across all markets where you operate today and for the markets you intend to dominate tomorrow. A dashboard provides you with full visibility of the status of each of your filings. And, at a later date, if your strategy changes and you want to bring your VAT compliance function back in-house, that’s not a problem. Your partnership with us as a global tax technology provider is flexible. So this means you can readily switch to a fully insourced software solution.

VAT legislation is complex and continues to change. Businesses need the support of both managed services and technology to help them meet their VAT compliance obligations and to allow them to continue to trade with confidence. Appointing Sovos with our blend of human expertise and technology empowers companies to comply with and face the changing VAT landscape head-on.

Keeping up with VAT rates and reporting changes is daunting. For multinational companies, that complexity only intensifies. If you trade across multiple borders the associated workloads also increase.  For these reasons, companies need to ensure they have a robust compliance continuity plan in place to ensure their VAT compliance obligations are met wherever they operate.

The cost of noncompliance can be high. And errors can be caused by various reasons. These include late filings, using incorrect tax rates, misinterpretation of the regulations or simply due to human error.  Whatever the cause, the repercussions can be costly leading to loss of VAT deductions, invasive and time consuming audits and other financial penalties and reputational damage.

As the challenges and complexities of VAT compliance continue to rise, more companies are realising the benefits of embracing a managed service approach to all or part of their VAT compliance obligations.

Why Partner With a Certified Service Provider (CSP) for Sales Tax Administration

Certified Service Providers (CSPs) allow businesses to outsource most sales tax administration responsibilities, making it easier to comply with the laws of a given jurisdiction.

Choosing a CSP to manage your sales tax filings reduces the burden of managing end-to-end sales tax compliance while reducing organizational liability during the tax calculation process.

VAT Talks – Christiaan van der Valk, VP, Strategy Talks to Summitto

In a recent VAT Talks interview with Summitto, Christiaan discussed the importance of e-invoicing, the future of VAT and technology and why companies operating in Europe should embrace real-time reporting.

Solve Tax for Good in SAP® Solutions

SAP leaders have been challenged to enable business transformation with a migration to S/4HANA.
At the same time, state and local governments have embarked on a digital transformation of their own, requiring companies to provide more data on sales and purchases. Keeping pace with regulatory changes while maintaining patchwork processes across the business during the migration can put an additional strain on resources and ratchet up the pressure.

True End-to-End Compliance

Getting sales and use tax right shouldn’t be this hard, so Sovos provides a fully integrated solution to systematically manage your sales and use tax processes. We address your most pressing and time-consuming issues quickly and seamlessly, allowing tax & finance professionals to focus on creating revenue streams, scaling operations and growing your business.

The Industry Leader in Tax and Regulatory Reporting

Last year, Sovos promised insurers we would Solve Tax for Good®. A year later, we have helped thousands of insurers ease the burden and risk of modern tax and regulatory compliance. We have kept our promise by helping insurers stay ahead of the Tax Cuts and Jobs Act, SECURE Act and all other tax and regulatory changes. 

As part of our commitment to insurance professionals, we acquired statutory reporting market leaders Eagle Technology Management (ETM) and Booke Seminars in 2019 and 2020, respectively. We are now the market leader in statutory reporting. More than 70 percent of the U.S. insurance market uses our compliance software and educational resources. With the acquisition of ETM, Sovos also adds insurance premium tax and unclaimed property compliance to its portfolio of solutions. By acquiring Booke Seminars, Sovos adds statutory education and federal income tax filing software.

Statutory Reporting

Complying with statutory reporting and state filing requirements is complex and involves several time-consuming tasks. Things like entering and verifying countless schedules, validating and cross-checking data across schedules and submitting filings to the NAIC and state regulators all take vital resources away from your business. We help you eliminate that burden by providing the statutory reporting industry’s leading: 

  • educational seminars
  • handbooks
  • insurance compliance calendar
  • and statutory reporting, municipal tax, insurance premium tax and federal income tax solutions

Unclaimed Property

Every state imposes its own unique unclaimed property regulations. And changes occur daily. As a result, officials estimate that 80 percent of all businesses are out of compliance with unclaimed property laws. But not keeping track can quickly catch up with you. Fines, penalties, interest and misdemeanor charges can place a massive financial burden on your business. And if fraud is discovered, your business’s reputation will take a hit. Sovos’ Unclaimed Property solutions streamline the reporting process, safeguard businesses from audit risk and have processed more than $8.5 billion of unclaimed property on behalf of our customers.

Tax Information Reporting and Withholding

Every year, Sovos reports 620 million tax forms, making us the #1 private filer of 10-series forms filed to the IRS. Insurers have relied on our wide breadth of tax information reporting solutions  for over 30 years. Sovos’ tax information reporting, withholding management and tax identity management solutions reduce manual work by up to 90%. This empowers insurers to focus on their most important business goals while ensuring compliance.

About Sovos

Sovos is a leading global provider of software that safeguards insurers from the burden and risk of modern tax. As tax goes digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance, tax and regulatory reporting. Sovos supports more than 7,000 customers, including 70 percent of the U.S. insurance market, and integrates with a wide variety of business applications. We have offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg.

Infographic: How Does Your E-Archive Stand Up?

With governments around the world digitising tax, companies are now under greater pressure than ever to ensure they are audit ready, all the time.

We’ve pulled together a quick checklist for you to cross-reference to see – Is your e-archive compliant?

Executive Summary: Reducing the Impact of Sales and Use Tax Compliance in the New Retail Environment

Aberdeen Group survey report reveals complex challenges retailers face today in sales and use tax compliance and provides a roadmap to navigate the increased complexity to come.

Sales and Use Tax Study for Software Organizations – Executive Summary of Aberdeen Data

Regardless of size, today’s software organizations are significantly challenged in the quest for Sales and Use Tax (SUT) compliance, as they continue to evolve their businesses, create new product offerings, explore new business channels and expand geographically.