Starting a business in Brazil comes with various obligations, among which are tax and VAT registration. For the latter, foreign companies that have permanent establishments in Brazil must also appoint fiscal representatives.
Below, our lawyers in Brazil explain what opening a fiscal representative implies and what services such an agent can provide. You can also rely on us for support in tax representation.
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What is a Brazilian fiscal representative?
A fiscal representative is also referred to as a fiscal agent, and its main role is to assist companies and entrepreneurs doing business in Brazil to comply with VAT regulations. However, this role is often exploited beyond VAT compliance.
Fiscal representation in Brazil is provided by accountants or specialized agents who know the accounting legislation. Our Brazilian lawyers are acquainted with the fiscal legal framework and can offer assistance.
How to open a fiscal representative in Brazil
In order to create a fiscal representative in Brazil, you must incorporate a company or register as a sole proprietor if you are an accountant. The procedure is rather simple, no matter the legal form you choose, and can be overseen by our Brazilian law firm.
Fiscal representation services in Brazil
Even if tax representation is a requirement applicable to foreign companies, local ones also appeal to such services, as it is less time-consuming in relation to the authorities. As such, here are the main fiscal representation services available in Brazil:
- VAT registration;
- acting as a liaison officer with the tax authorities;
- VAT return filing;
- handling customs operations related to importing and exporting goods into/from Brazil.
It is also possible to appoint a tax agent to obtain a tax code and file annual financial statements in Brazil. This process can also be completed during the business incorporation procedure with the help of our law firm in Brazil.
Particularities of the VAT system in Brazil
Even if you do not need a fiscal representative, such a service is advisable in Brazil, as the VAT system is different from other countries. Specifically, there are 2 types of VAT levies here, as follows:
- the first one is the tax on the circulation of goods and transportation and communication services, applied at federal level;
- the second one is the tax on industrialized products, applied at state level.
The rates of the value added tax are also several, as you can read below:
- the state VAT rate is levied at 17%, 18%, and 20%, depending on the state in which the company operates;
- the tax on industrialized products is imposed at municipal level and at rates ranging from 0% to 365% in accordance with the Harmonized System Code.
So, the first thing to understand is that a fiscal representative in Brazil can help you register for VAT in the state where you will be operating your company. It is also important to note that there is no voluntary registration procedure, as such, the application with the tax authorities must be filed before starting any economic activity.
VAT return filing requirements in Brazil
Brazilian businesses must file federal and state VAT returns on a monthly basis. These must be submitted as follows:
- federal returns must be submitted on the 15th of the following month for VAT payments made during the current month;
- state returns must be filed based on the type of business and date established by each state.
Our local lawyers can offer more information on this subject.
Our law firm is at the service of foreign citizens with various services, including support in immigration to Brazil. From this perspective, we can assist in filing for both residency and citizenship in Brazil.
Feel free to contact us for assistance in opening a fiscal representative in Brazil.