Brazil: State VAT on Digital Goods
On October 5, 2017, Brazil published new VAT rules for transactions involving standardized digital goods such as packaged software, games, apps, electronic files and other goods sold electronically. The new law will become effective April 1, 2018. Under the new regulations, only transactions involving finalconsumers will be subject to state VAT. VAT will be collected through the website or platform through which the transaction is made, for the benefit of the state in which the buyer is located. And, in import transactions, the responsibility for collecting the tax can be with the credit or debit card administrator or the financial company that is the foreign exchange intermediate.