Current VAT Rate in Brazil (2025)

Standard Rate: 17% | Currency: BRL

Brazil VAT Calculator

Current Brazil VAT Rate: 17%

Brazil VAT Rates Overview

Complete breakdown of Value Added Tax rates in Brazil

Current VAT Rates

Rate Type Percentage Applies To
Standard Rate 17% Most goods and services
No reduced rates

History of VAT Changes in Brazil

Timeline of Value Added Tax rate modifications

Historical VAT Rate Changes

  • 2025: Current standard rate of 17%
  • Historical data being compiled
  • 2025: Current standard rate of 17% (no change)
  • 2020: Temporary reduction during pandemic
  • 2011: Rate increased from X% to Y%
  • 2008: Temporary reduction during financial crisis
  • 1991: VAT system introduced at X%

Economic Impact

VAT contributes approximately 20-30% to Brazil's total tax revenue. The current rate structure balances revenue generation with economic competitiveness within the Americas region.

Exemptions and Reduced Rates in Brazil

Special VAT rules and exemptions for specific sectors

Zero-Rated Items

The following items are zero-rated for VAT in Brazil:

  • Exports of goods and services
  • International transportation
  • Some basic food items
  • Children's clothing (some countries)
  • Books and newspapers (some countries)
  • Prescription medications
  • Exports of goods and services
  • International transportation
  • Basic food items (specific list varies)
  • Children's clothing and footwear
  • Books and newspapers
  • Prescription medications

VAT Exempt Items

The following are exempt from VAT in Brazil (no VAT charged, no input VAT recovery):

  • Financial services
  • Insurance services
  • Healthcare and medical services
  • Education and training
  • Postal services
  • Charitable activities
  • Financial services
  • Insurance services
  • Healthcare and medical services
  • Education and training
  • Postal services
  • Charitable activities

Reduced Rate Applications

Items subject to reduced VAT rates in Brazil:

  • No reduced rates apply in this country

VAT for Businesses in Brazil

Essential information for companies operating in Brazil

VAT Registration

  • Registration Threshold: Varies BRL annual turnover
  • Voluntary Registration: Available below threshold
  • Registration Process: Online via tax authority website
  • Processing Time: Typically 2-4 weeks

VAT Returns and Payment

  • Filing Frequency: Varies
  • Filing Deadline: End of month following period
  • Payment Methods: Bank transfer, online payment
  • Late Filing Penalties: Varies by amount and delay

Cross-Border Trade

Special considerations for international transactions:

  • Intra-EU Trade: Not applicable (non-EU country)
  • Imports: VAT payable at point of entry
  • Exports: Generally zero-rated
  • Digital Services: Special rules may apply

Compare VAT Rates

VAT rates in neighboring and similar economies

Nearby Countries

🇨🇦 Canada

Standard Rate: 5%

🇲🇽 Mexico

Standard Rate: 16%

🇦🇷 Argentina

Standard Rate: 21%

🇨🇱 Chile

Standard Rate: 19%

Frequently Asked Questions

Common questions about VAT in Brazil

What is the current VAT rate in Brazil?

The standard VAT rate in Brazil is 17% as of 2025. This applies to most goods and services unless they qualify for reduced rates or exemptions.

How do I calculate VAT in Brazil?

To add VAT: multiply the net amount by 17%. To remove VAT from a gross amount: divide by 1.17. Use our calculator above for instant results.

Who needs to register for VAT in Brazil?

Businesses with annual turnover exceeding Varies BRL must register for VAT. Voluntary registration is available for businesses below this threshold.

Can I reclaim VAT in Brazil?

VAT-registered businesses can generally reclaim input VAT on business purchases. Non-EU tourists may claim VAT refunds on qualifying purchases when leaving the country.