Why Untangling Tax Laws in Brazil is Beyond Difficult

If you have the responsibility for VAT determination and tax reporting in Brazil as part of your job description, you no doubt understand the levels of complexity involved in getting it right and ensuring VAT compliance.

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.

For a clearer explanation as to why Brazil has become so complicated and the sheer volume of VAT regulations and standards businesses are up against, we have put together this infographic, Untangling Tax Laws in Brazil is Beyond Difficult. This will help inform you as to where the Brazil market is headed and why it is so important to develop a tax strategy that is capable of keeping pace with consistent change, new VAT reporting standards and mandates and increasing demands on business to allow for stricter government oversight.

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.

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