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Simplifying Brazil’s highly complex tax system will demand major technological adaptation from the government and companies, in a process that will need to be accomplished while legislators are still working out the new framework’s rules.
TAX REFORM
Brazil’s consumption tax reform imposes major technological shifts

The consumption tax reform is a landmark for Brazil, but there’s a long way to go before the changes become operational. Image: Accogliente Design/Shutterstock
In late 2023, Brazil’s Congress approved the skeleton of a landmark reform of its consumption tax framework, progress celebrated as the culmination of decades of discussions and legislative back-and-forth. It was also clear that approval was only the first leg of a long journey toward implementation, only expected to be completed in 2033.
Brazil took another step on that road this Tuesday, with the launch of a pilot program for the technological infrastructure that will be used by the Federal Revenue Service in the new tax system…

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