Indirect Taxation: federal, state and municipal developments in February

Federal

Federal Government backs down after announcing increase in import tariffs on capital goods and technology

On 02.05.2026, a Resolution of the Chamber of Foreign Trade (Gecex) was published that increased the Import Tax rates applicable to various capital goods and computer and telecommunications goods (BK/BIT).

The measure raised tariffs according to the classification of each product in the Mercosur Common Nomenclature (NCM). In general, rates below 7% were raised to 7.2%; rates between 7.2% and 12.6% went to 12.6%; and rates between 12.7% and 20% were increased to 20%. The change reached more than a thousand NCM codes.

The measure entered into force in two stages. For most products, the new tariffs became effective as of February 6, 2026. Goods previously subject to a zero rate were subject to the increased Import Tax only as of March 1, 2026.

A few days later, a new Resolution introduced an exceptional rule applicable to requests for reduction of the Import Tax on capital goods and computer and telecommunications goods. Requests filed between February 9, 2026 and March 31, 2026, concerning products with a Common External Tariff equivalent to 0% and listed in the February 5, 2026 Resolution, may be granted a provisional reduction for up to 120 days, provided that the minimum requirements are met. Such provisional relief may be revoked if the request is ultimately denied.

On February 27, 2026, the Federal Government partially reversed course and issued another Resolution reducing the Import Tax rate to zero for approximately 105 capital goods and computer and telecommunications items. The new rule entered into force on the date of its publication

Tax incentives for data centers lapse as the future of Redata remains uncertain

On February 25, 2026, the Provisional Measure that created the Special Tax Regime for Data Center Services (Redata) expired, as the constitutional 60-day period (extendable once for an additional 60 days) elapsed without conversion into law.

Redata was designed to foster investment in Brazil’s data center sector by granting the suspension, with subsequent conversion into a zero rate, of certain federal taxes, including PIS and Cofins (also on imports), the Tax on Industrialized Products (IPI), and Import Tax.

To preserve these incentives, a Bill was introduced and approved by the Chamber of Deputies on February 25, 2026. However, the Federal Senate did not review the proposal within the required timeframe, preventing its enactment.

Any attempt to approve similar legislation at a later stage now faces an additional constraint: Brazil’s 2026 Budget Guidelines Law expressly prohibits the extension or expansion of tax expenditures for the following fiscal year.

As a result, the federal government’s approach to maintaining a tax incentive framework for the data center industry remains uncertain.

Federal Revenue Service updates rules on linear reduction of incentives and preserves exemptions for non-profit associations

On 02.23.2026, the Federal Revenue Service published Normative Instruction RFB No. 2,307/2026, which updates the Single Annex related to the linear reduction of incentives and benefits of a tax, financial or credit nature granted by the Federal Government.

The rule clarifies that this linear reduction does not apply to exemptions from Corporate Income Tax (IRPJ), Social Contribution on Net Income (CSLL) and Cofins granted to non-profit civil associations. Although these benefits were included in the Statement of Tax Expenditures that accompanied the most recent draft of the Annual Budget Law (LOA), the Federal Revenue Service reaffirmed that such entities remain outside the scope of the measure, with the respective exemption regime maintained.

In addition, the new instruction revoked a provision of the previous rule that removed from the linear reduction the benefit related to the deductibility of donations made to non-profit civil entities. The instruction entered into force on the date of its publication in the Official Gazette of the Union.

Senate approves temporary reduction of PIS and Cofins for the chemical industry during transition from REIQ to Presiq

On 02.25.2026, the Federal Senate approved a Complementary Bill that defines the PIS and Cofins rates applicable to industries in the chemical sector during the transition period between the Special Regime for the Chemical Industry (REIQ) and the Special Sustainability Program for the Chemical Industry (Presiq), established by Law No. 15,294/2025 and scheduled to come into force on 01.01.2027.

According to the approved text, the PIS and Cofins rates will be temporarily reduced throughout this transition period. For the interval between January 2025 and February 2026, the rates are set at 1.52% for PIS and 7% for Cofins. Between March 2026 and December 2026, the rates will be 0.62% for PIS and 2.83% for Cofins.

The bill now goes to presidential sanction.

ABNT issues new standard on tax compliance management, establishing a governance benchmark

On 02.10.2026, the Brazilian Association of Technical Standards (ABNT) issued a new normative act setting forth requirements and guidelines for the implementation of tax compliance management systems. The standard provides a structured framework to support companies in organizing and managing their tax obligations through a continuous governance cycle, encompassing planning, execution, monitoring, and ongoing improvement of internal controls. The objective is to enhance transparency, risk management, and the reliability of tax reporting processes.

Although it is voluntary and does not create new tax obligations, the normative act sets verifiable parameters that may, in the future, enable specific certifications in the area. The initiative stems from a demand from Brazil’s Federal Revenue Service in the context of the “Confia” cooperative compliance program and was prepared throughout 2025 with the participation of representatives from the business community.

Federal Revenue Service clarifies taxation criteria in the Simplified Taxation Regime and in the Remessa Conforme Program

On 01.30.2026, the Federal Revenue Service published a Private Ruling that clarifies the way of calculating the customs value on the import of goods by international shipment subject to the Simplified Taxation Regime (RTS), applicable to the customs clearance of goods up to US$ 3,000.00.

The ruling request was presented by a company that operates in the intermediation and agency of services and businesses in general, including facilitation of international payments and sale of third-party products in marketplaces.

In the case, the taxpayer questioned whether the amounts paid as extended warranty and marketplace commissions could be excluded from the customs value for the purposes of calculating the Import Tax (II), arguing that these amounts would not be destined to the exporter. It also sought to confirm whether the concept of customs value would be the same in the RTS and in the Remessa Conforme Program (PRC).

The Federal Revenue Service clarified that the calculation must observe the RTS rules, even if the purchase was made through an e-commerce company participating in the PRC. According to the understanding expressed, the customs value corresponds to the total value of the transaction, including the price paid or payable, freight, insurance and other expenses related to the operation. In this context, the commission paid by the buyer to the marketplace is part of the total value of the transaction. On the other hand, the amounts related to the extended warranty, when charged in a Service Invoice issued by the e-commerce company to the purchaser, do not make up the customs value.

Federal Revenue Service rules out the application of ICMS Presumed Credit Subsidy Law

On 01.30.2026, a Private Ruling was published in which the Federal Revenue Service analysed the application of Law No. 14,789/2023 to presumed ICMS credits.

The ruling request was formulated by a taxpayer in the maritime, cabotage and river transport sector of gases, chemicals and fuels, who questioned whether presumed ICMS credits granted to transport service providers, based on an ICMS agreement, would be subject to the taxation system of investment subsidies established by the aforementioned law.

The Federal Revenue Service concluded that the presumed ICMS credit is not characterized as an investment subsidy, as it consists of an alternative and optional method of calculating the tax. Due to this nature, it was understood that Law No. 14,789/2023 does not apply to such credits.

Federal Revenue Service recognizes PIS and Cofins-Import credit in the temporary admission regime for data centers

On 02.02.2026, a Private Ruling was published in which the Federal Revenue Service recognized the possibility of taking advantage of credits, including extemporaneous ones, of PIS and Cofins-Import levied on the importation of goods subject to the temporary admission regime, at the rate of 1% per month of the value of the contributions due, when these goods are used as inputs in the provision of services.

The ruling request was presented by a taxpayer who provides data center services, including data processing, application provider services and internet hosting, and who imports servers from abroad based on operating lease agreements, framed in the aforementioned special customs regime.

In this context, the taxpayer questioned the possibility of appropriating credits from contributions collected under the temporary admission regime, as well as the form, time and possible extemporaneous appropriation of these credits.

The Federal Revenue Service recognized that the data center activity constitutes the provision of services and not mere leasing of goods, concluding that imported goods are essential to the execution of the taxpayer’s activities, allowing the appropriation of PIS and Cofins credits as inputs. The credits must be appropriated in the same proportion as the tax payment, that is, at the rate of 1% per month, during the term of the regime.

In addition, the Federal Revenue Service admitted the extemporaneous use of these credits both in relation to regimes still in progress and those already closed, including in cases where the assets have been returned abroad.

Federal Revenue Service clarifies timing and calculation of PIS and Cofins credits in purchases with future delivery

In a Private Ruling published on 02.06.2026, the Federal Revenue Service clarified the treatment applicable to PIS and Cofins credits in the acquisition of goods for future delivery. The ruling was requested by a company engaged in wholesale trade.

According to the tax authorities, in transactions involving future delivery, the sale is considered legally concluded upon execution of the contract, at which point ownership of the goods is transferred to the purchaser, even though physical possession occurs at a later date. As a result, PIS and Cofins input credits may be recognized based on the electronic invoice issued for billing purposes (so-called “simple billing invoice”).

However, the Federal Revenue Service emphasized that the ICMS amount reflected exclusively on the invoice issued upon the actual delivery of the goods must be excluded from the PIS and Cofins credit base. This adjustment must be made in the period in which the ICMS is formally reported on the delivery invoice, even if the PIS and Cofins credits were previously recognized.

In practical terms, for companies purchasing goods for resale for future delivery arrangements, the ruling confirms that credits may be claimed at the time of billing, subject to a subsequent adjustment to exclude the ICMS component in the period when the delivery invoice is issued.

Federal Revenue Service clarifies scope of Cofins exemption for non-profit associations

On 02.19.2026, the Federal Revenue Service published a Private Ruling clarifying the scope of the Cofins exemption applicable to civil non-profit associations.

According to ruling, revenues derived from an association’s “core activities” are exempt from Cofins, provided that the statutory and legal requirements are met. The tax authorities clarified that “core activities” encompass services performed within the entity’s institutional purpose, as defined in its bylaws, and consistent with its non-profit objectives.

Importantly, the ruling confirms that revenues received in exchange for services (i.e., consideration-based activities) may also qualify for the exemption, provided that such revenues are directly connected to the association’s primary purpose.

Accordingly, revenues generated in the pursuit of the association’s essential objectives and made available to its intended beneficiaries remain exempt from Cofins, as long as the applicable legal requirements are satisfied and the activities do not create an unfair competitive advantage over for-profit entities not eligible for the exemption.

Ceará

Ceará revokes the maintenance of ICMS credits on exempt transactions involving solar and wind energy equipment

On 02.09.2026, the State of Ceará amended its ICMS regulations to revoke the rule that previously allowed taxpayers to retain ICMS input credits in connection with exempt transactions involving equipment and components used in the generation of solar and wind energy.

With the revocation, the general non-cumulativity principle once again fully applies. Under this principle, when goods are sold under an ICMS exemption, taxpayers are generally not entitled to maintain or utilize related input credits, unless specific legislation provides otherwise. As a result, ICMS credits linked to prior stages of the supply chain must be reversed or offset when associated with exempt outbound transactions.

This change may increase the effective tax cost of operations involving renewable energy equipment in the state, particularly for businesses that previously relied on the credit-preservation mechanism.

Ceará incorporates ICMS agreements on tax incentives and tax substitution regime

By decree published on 02.18.2026, the State of Ceará formally ratified and incorporated into its domestic legislation several ICMS agreements approved at the national level, authorizing the granting of tax incentives and regulating other matters related to the state VAT.

Among the measures incorporated are: (i) the granting of deemed ICMS credits on the sale of diesel and biodiesel to public transportation concessionaires and licensees; (ii) an ICMS exemption on transactions involving medicines supplied to federal public administration entities; and (iii) a reduction in the ICMS taxable base on sales of military vehicles, as well as related parts and accessories.

The decree also incorporated agreements addressing the ICMS tax substitution regime applicable to transactions involving electricity.

The new rules entered into force on the date of publication.

Goiás

Goiás introduces PIX QR Code system for collection of state taxes

Through a normative instruction published on 02.11.2026, the State of Goiás implemented a new system allowing the collection of state revenues via PIX QR Code, Brazil’s instant payment platform.

The measure enables taxpayers to pay state taxes, including ICMS and IPVA (motor vehicle property tax), through instant electronic transfers, with the aim of simplifying and accelerating tax compliance.

The normative instruction became effective upon publication.

Mato Grosso

Mato Grosso regulates declaration requirement for access to ICMS tax incentives

By ordinance published on 02.12.2026, the State of Mato Grosso established procedural rules for the submission of a declaration required from taxpayers benefiting from ICMS tax incentives, as provided under state legislation.

To qualify for such incentives, taxpayers must formally declare that: (i) they are not party to any agreement, treaty, or commitment that imposes restrictions on the expansion of agricultural activities in areas not protected by specific environmental legislation; and (ii) they are not part of national or international commercial arrangements that restrict market access for legally operating rural producers, potentially affecting the competitiveness of products originating in Mato Grosso and the economic and social development of its municipalities.

Failure to submit the required declaration prevents taxpayers from accessing the relevant tax incentives. The requirement has been in force since February 12, 2026.

Minas Gerais

By decree published on 02.11.2026, the State of Minas Gerais amended its administrative tax regulations to prohibit the granting of special tax regimes to taxpayers who do not meet the conditions required to obtain a Tax Compliance Certificate (ARF).

To obtain the ARF, taxpayers must, among other requirements: respond to tax authority notices; file ICMS assessment and information returns; submit digital bookkeeping files (EFD); comply with ancillary obligations; have no outstanding state tax debt registered for collection; not be listed in the registry of barred suppliers; and maintain an active tax registration status.

The new requirement will become effective on May 1, 2026.

Minas Gerais sets annual cap on transfer of accumulated ICMS credits under special regime

In a resolution published on 02.24.2026, the State of Minas Gerais established a cap of BRL 150 million on the total amount of accumulated ICMS credits eligible for transfer under a special regime during the 2026 fiscal year.

The resolution entered into force on the date of publication.

Paraíba

Paraíba issues additional rules on the Electronic Content Declaration (DC-e)

On 01.30.2026, the State of Paraíba published regulations amending the rules applicable to the Electronic Content Declaration (DC-e), a document used to accompany the transportation of goods in situations where the issuance of a tax invoice is not required.

Among the changes, the regulation establishes a deadline for cancellation of the DC-e in cases where the document is issued through electronic systems provided by marketplaces or by the Brazilian Postal Service (ECT).

The new rules took effect as of February 1, 2026.

Paraíba regulates implementation of the Electronic Gas Invoice (NFGas)

On 01.30.2026, the State of Paraíba issued regulations governing the Electronic Gas Invoice (Nota Fiscal Eletrônica do Gás – NFGas), model 76, and its corresponding auxiliary document (DANFGas), aligning state legislation with the guidelines approved by Brazil’s National Council for Fiscal Policy (Confaz).

The regulation defines, among other matters, the entities responsible for issuing the NFGas as of July 1, 2026, including in transactions involving piped natural gas distributed through networks. It also establishes formal requirements for issuance, such as prior accreditation of the issuer with the state tax authorities.

The NFGas must comply with the technical layout and specifications set forth in the official Taxpayer Guidance Manual and may be issued through proprietary or third-party systems.

The regulation entered into force upon publication, with effects as of February 1, 2026.

Pará

Pará incorporates ICMS Agreement 109/2024 and updates rules on intercompany transfers of goods

In an act published on 02.25.2026, the State of Pará amended its ICMS rules to incorporate the provisions of ICMS Agreement No. 109/2024, establishing procedures applicable to transfers of goods between establishments under common ownership.

The regulation also allows taxpayers to elect to treat such transfers as taxable events for ICMS purposes, potentially altering the tax treatment of these internal movements.

Among the key practical effects is the introduction of rules governing the calculation of ICMS due in advance on interstate transfers received without prior ICMS assessment, allowing taxpayers to deduct the ICMS amount indicated on the transfer invoice. The regulation also revokes prior provisions to consolidate the updated treatment.

This development is particularly relevant for companies with decentralized operations, as it affects the taxation and reporting of internal goods transfers.

Santa Catarina

Santa Catarina grants deemed ICMS credit to telecommunications service providers

By means of a decree published on 02.09.2026, the State of Santa Catarina granted a 1% deemed ICMS credit to taxpayers providing telecommunications services, subject to the issuance of a single-copy tax invoice.

The new measure replaces a prior procedure under which such taxpayers were required to reverse debits through refund claims.

The decree also provides for retroactive effects as of August 1, 2025, allowing taxpayers to claim the deemed credit in respect of prior periods.

Rio Grande do Sul

Rio Grande do Sul revises rules on transfer of accumulated ICMS credits linked to investments

In an act published on 02.23.2026, the State of Rio Grande do Sul amended its ICMS regulations to update the rules governing the transfer of accumulated ICMS credits held by industrial establishments that invest in fixed assets.

The changes clarify the method for calculating credits arising from sales of goods manufactured by the establishment itself and regulate the possibility of requesting transfer of such credits as of January 1, 2027.

The new rules entered into force upon publication, with retroactive effects as of January 1, 2026.

Rio Grande do Sul updates terms of ICMS debt settlement program

On February 25, 2026, the State of Rio Grande do Sul amended the public notice governing the settlement of ICMS (and legacy ICM) debts classified as uncollectible or difficult to recover.

Among the changes, March 10, 2026 was set as the reference date for determining a taxpayer’s classification under the Special Tax Supervision Regime (REF). Additionally, reductions in interest and penalties are now capped at 65% of the updated amount of each negotiated tax credit, depending on the selected payment modality.

The updated rules also establish deadlines and conditions for applying judicial deposits or seized amounts toward debt amortization, including deadlines for conversion into revenue, use of court-ordered payment instruments, and commencement of payments under the program.

Roraima

Roraima aligns ICMS tax benefits on fuels with the single-phase regime

On 02.20.2026, the State of Roraima amended its ICMS regulations to align tax incentives applicable to diesel and biodiesel transactions with Brazil’s single-phase (monophase) ICMS regime for fuels.

The changes replace prior mechanisms, such as exemptions and reductions of the taxable base, with deemed credits calculated based on the specific per-unit (ad rem) rate applicable under the single-phase system.

Among the benefits maintained are deemed credits for transactions involving B-100 biodiesel, diesel supplied to registered fishing vessels, and diesel used in integrated agricultural projects. The regulation also revokes a previous exemption applicable to diesel supplied to fishing vessels.

In addition, the regulation provides for deemed credits or refund mechanisms in cases where the fuel has already been taxed at a prior stage, ensuring consistency with the single-phase regime.

Sergipe

Sergipe amends ICMS rules applicable to temporary admission of imported goods

On 01.30.2026, the State of Sergipe enacted amendments to its ICMS regulations concerning the tax relief applicable to imports carried out under the Special Customs Regime of Temporary Admission. The new provisions apply retroactively as of July 25, 2025.

Under the revised rules, the ICMS exemption is now expressly conditioned on the adoption of equivalent treatment for federal taxes. In other words, the state-level exemption does not apply in cases where federal taxes administered by the Brazilian Federal Revenue Service are assessed on a proportional basis in connection with the import transaction.

The amendments also address matters related to the state’s jurisdiction to assess and audit ICMS, the requirements for substituting the beneficiary during the term of the temporary admission regime, and the consequences of non-compliance, including applicable charges and penalties.

Tocantins

Tocantins updates procedures for recognition and transfer of accumulated ICMS credits

the State of Tocantins issued new regulations redefining the procedures for recognition and transfer of accumulated ICMS credits arising from export activities.

The rules apply to industrial establishments (excluding meatpacking plants), as well as rural producers and cooperatives. The updated framework broadens the scope of eligible situations and requires taxpayers to formally submit requests through a specific standardized form.

The measure aims to streamline the administrative process while reinforcing procedural requirements for the use and transfer of accumulated credits.

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This material is for informational purposes only. Our Consumption Tax team is available to provide specific legal advice.