O Dual VAT divides the tax on goods and services into two parts: CBS (federal) + IBS (state/municipal), replacing taxes such as PIS, COFINS, ICMS and ISS, and applying non-cumulativeness.
Featured benefits: - Tax simplification, fewer ancillary obligations. - Greater predictability and transparency. - Extended credit on inputs, reducing the effects of the "cascade" of taxes.
Challenges identified: - Complex transition phase - coexistence between old and new systems. - Technological adaptation (ERPs, tax management systems). - Sectors with special regimes may face increased burdens.
- Map the current operations that generate credit and how they will work under CBS/IBS. - Updating ERP and accounting systems to support new credit/debit calculations. - Carry out tax burden simulations to identify gains and risks. - Seek specialized advice to interpret legislation and regulations that are yet to be published.