Consumption Taxation: Federal, State, and Municipal Developments in September

Federal

REDATA: A new tax incentive regime for data centers

On September 15, 2026, a law was published establishing the Special Tax Regime for Data Center Services (REDATA), which provides tax incentives for the acquisition and importation of certain equipment to be capitalized as fixed assets by companies implementing projects to install, modernize, or expand data center services in Brazil.

Eligible companies may purchase in the domestic market or import goods for their fixed assets with suspension of PIS/Cofins, PIS/Cofins-Import, Tax on Industrialized Products (IPI), and Import Tax. Subject to the statutory requirements, the suspension may be converted into zero rates. The regime generally has a five-year term. However, the benefits relating to PIS/Cofins, PIS/Cofins-Import, and IPI will apply only through December 31, 2026. The Import Tax suspension applies exclusively to goods with no equivalent domestic production and listed in an act of the Executive Branch.

Because REDATA is a federal regime, its benefits do not directly extend to ICMS, which is imposed by the States, or ISS, which is imposed by Municipalities. This is particularly significant for the sector given the material state tax burden on the acquisition of servers and other equipment used in data centers.

For further information on the new regime, see our client alert here

Complementary law enacted amending the National Tax Code with new rules on penalties and tax disputes

Federal Complementary Law No. 236 of September 4, 2026 amended the National Tax Code (CTN) to establish limits on tax penalties, regulate special tax and customs arbitration, and establish general rules applicable to administrative tax proceedings.

Penalties calculated on the amount of tax or credit are capped at 75%. The cap rises to 100% in cases of intentional fraud, tax evasion, or collusion and to 150% for repeat offenses. The Law also provides for reductions of 50%, 40%, 30%, or 20% of the penalty, depending on the timing and method of payment or installment payment, subject to the legislation of each federative entity.

The new chapter governing administrative tax proceedings guarantees due process, adversarial proceedings, full rights of defense, and two levels of review in federative entities with more than 100,000 inhabitants. The periods for filing an administrative challenge, a voluntary appeal, or a special appeal are 20 business days. The period for motions for clarification is five business days, and the running of these periods is suspended between December 20 and January 20.

The Law added arbitration, an accepted settlement proposal, a mediation agreement, and the acceptance of a surety bond or bank guarantee to the circumstances that suspend the enforceability of tax liabilities.

Federative entities will have two years to adapt their legislation to the new rules. In the absence of regulations implementing the general rules governing administrative tax proceedings, Articles 208-A through 208-J of the CTN will apply until specific legislation is enacted.

The Law entered into force on the date of its publication.

Government reduces PIS/Cofins rates on gasoline and hydrous ethanol

On September 10, 2026, a Decree was issued amending Decree No. 5,059/2004 to reduce the PIS and Cofins rates applicable to the importation and domestic sale of gasoline and gasoline streams, other than aviation gasoline, and hydrous fuel ethanol.

For gasoline and gasoline streams, the Decree establishes, for the period from September 10 through October 9, 2026, a reduction coefficient of 0.7981 for the PIS and Cofins rates. As a result, the rates are reduced to BRL 28.49 and BRL 131.51, respectively, per cubic meter of gasoline and gasoline streams.

For hydrous fuel ethanol, a reduction coefficient of 1 was established for the same period, applicable to the PIS and Cofins rates set forth in Article 5, paragraph 4, of Law No. 9,718/1998. As a result, the rates are reduced to BRL 0.00 per cubic meter of hydrous fuel ethanol.

The Decree entered into force on the date of its publication.

Government amends rules applicable to simplified taxation of international shipments

On September 10, 2026, a legal act was published converting Provisional Measure No. 1,357/2026 into law and amending Decree-Law No. 1,804 of September 3, 1980, which governs the simplified taxation of international postal shipments.

Simplified taxation remains limited to goods valued at no more than USD 3,000 contained in postal shipments. The Law authorizes the Minister of Finance to modify Import Tax rates, including reducing them to zero for the bracket up to USD 50 and to 30% for the bracket up to USD 3,000, depending on the import method or participation in a compliance program of the Federal Revenue Service.

Digital intermediary platforms and logistics operators enrolled in the compliance program must implement mechanisms to identify indications of underinvoicing, artificial splitting of shipments, and concealment of the sender. The required measures include traceability of foreign sellers, monitoring of anomalous patterns, maintenance of electronic transaction records, and cooperation with the Federal Revenue Service.

Failure to comply with these obligations will subject the responsible parties to the administrative penalties provided for under customs and tax law.

The zero rate applicable to medicines with no equivalent domestic product intended for the treatment of rare or neglected diseases will take effect on the date established by an act of the Executive Branch, subject to a maximum period of 180 days from publication of the Law. The Law’s remaining provisions will enter into force on the date of publication.

MDIC and MF establish Siscomex Executive Committee and regulate management of information technology solutions

On September 10, 2026, an Interministerial Ordinance was issued by the Ministry of Development, Industry, Trade and Services (MDIC) and the Ministry of Finance (MF), establishing the Executive Committee of the Integrated Foreign Trade System (Siscomex) and governing the management of the information technology solutions that comprise the system.

The Executive Committee will assist the Siscomex Management Commission and will consist of representatives of the Federal Revenue Service and the Foreign Trade Secretariat. Its responsibilities include administering Siscomex, reviewing data, information, and procedural requirements, supporting the implementation of regulatory changes, and establishing the order of priority for system-related requests.

The Ordinance also establishes rules for managing Siscomex information technology solutions, distinguishing between shared and exclusive solutions. Shared solutions will be jointly managed by the Federal Revenue Service and the Foreign Trade Secretariat, while exclusive solutions will be assigned to the agency responsible for the relevant processes.

For shared solutions, management of the production service will rotate every six months between the Federal Revenue Service and the Foreign Trade Secretariat, which will alternate responsibility for the related expenditures.

The Ordinance repealed ME Ordinance No. 402/2020 and entered into force on the date of its publication.

Gecex regulates extension of Ex-tarifário tariff reductions for auto parts with no equivalent domestic production

On September 3, 2026, the Executive Management Committee of the Foreign Trade Chamber (Gecex) issued a Resolution governing the procedure for extending Ex-tarifário tariff reductions applicable to auto parts with no equivalent domestic production under the Regime for Auto Parts Not Produced Domestically.

The extension is limited to Ex-tarifário tariff reductions in force on the filing date and may be granted for a maximum period of two years. Any changes to the wording or tariff classification will not affect the applicable term.

The application must follow the annual schedule established by the Secretariat for Industrial Development, Innovation, Trade and Services and must include a document for public consultation.

The document must contain a technical drawing, the characteristics of the product, specifications, and technological distinctions from products manufactured in Brazil. No change will be permitted to the description or tariff classification of the Ex-tarifário tariff reduction under the Mercosur Common Nomenclature (NCM).

Applications concerning the same Ex-tarifário tariff reduction will be processed jointly and submitted to a specific public consultation for 15 calendar days.

The Resolution entered into force on the date of its publication.

Gecex extends 12% Export Tax rate on crude petroleum

On September 3, 2026, a Gecex Resolution was published extending, for a further 60 days, the 12% Export Tax rate on crude petroleum oils or oils obtained from bituminous minerals.

The measure covers products classified under NCM heading 2709 and maintains the rate established by Gecex Resolution No. 938/26.

The Resolution entered into force on September 8, 2026.

Federal Revenue Service recognizes zero PIS/Cofins rates for certain shared energy generation arrangements

On September 1, 2026, the General Coordination of Taxation (Cosit) of the Federal Revenue Service published a Private Ruling recognizing the application of zero PIS and Cofins rates to certain transactions involving distributed microgeneration and minigeneration.

According to the tax authorities, the rate reduction applies to active electricity supplied by the distributor to the consumer units of participants in projects with multiple consumer units or shared generation arrangements who have transferred their accounts to the consumer-generator, pursuant to Article 3 of Law No. 14,300/2022. For this purpose, the relevant account holder is the holder of the consumer unit registered with the distributor.

The Private Ruling further states that the amount of electricity subject to zero PIS and Cofins rates remains limited under Article 8 of Law No. 13,169/2015, which takes into account active electricity injected into the grid by the same consumer unit and energy credits generated by that unit in the same month or prior months, or by another unit held by the same person.

Finally, the Private Ruling notes that Article 8 of Law No. 13,169/2015 will be repealed from January 1, 2027 under Article 542, item LXIII, of Complementary Law No. 214/2025.

Federal Revenue Service publishes Internal Tax Ruling on qualification under Reidi after transfer of project ownership

On September 3, 2026, the Federal Revenue Service published a Cosit Internal Tax Ruling addressing the requirements for qualification under the Special Incentive Regime for Infrastructure Development (Reidi) following a change in project ownership.

The internal consultation was submitted by the Regional Tax Benefits and Special Regimes Team (EBEN/Devat07) to guide the interpretation of tax law and standardize the procedure to be followed by the Federal Revenue Service when a project approved by the competent Ministry is subsequently transferred to another legal entity.

The question submitted to Cosit specifically concerns the Reidi qualification procedure when the new project owner is not the legal entity originally approved by the Ministry responsible for the sector benefiting from the regime.

Under the position expressed in the ruling, the project must be approved by an ordinance of the competent Ministry published in the Federal Official Gazette, and the application for qualification or co-qualification must be filed with the Federal Revenue Service through the e-CAC Portal together with the relevant ordinance.

The ruling examines situations in which project ownership is subsequently transferred to another legal entity, including by an act of the Brazilian Electricity Regulatory Agency (Aneel). In such cases, technical or ownership changes made in accordance with the rules of the Ministry responsible for project qualification are treated as supplementary acts and, in principle, do not require a new approval ordinance.

For qualification before the Federal Revenue Service, the new owner must submit the original project approval ordinance together with the act issued by the competent Ministry that unequivocally evidences the transfer of ownership. The guidance applies to the requirements for suspension of the enforceability of PIS and Cofins liabilities under Reidi.

Federal Revenue Service disallows PIS/Cofins credits on self-generated electricity

On September 23, 2026, the Federal Revenue Service published a Cosit Private Ruling analyzing the calculation of PIS and Cofins credits on self-generated electricity consumed at a legal entity’s establishments.

According to the Federal Revenue Service, PIS and Cofins credits relating to electricity consumed at a legal entity’s establishments cover only electricity acquired from third parties and do not extend to self-generated and self-consumed electricity. The calculation of those credits also requires that the acquired goods or services be subject to payment of PIS and Cofins. In self-generation involving immediate consumption by the generating unit, without injection of electricity into the distribution grid, no PIS or Cofins is paid.

When surplus self-generated electricity is injected into the grid and later offset against electricity supplied by the distributor under the Electricity Compensation System (SCEE), the PIS and Cofins rates are reduced to zero on the quantity offset. Because no PIS or Cofins is paid on that portion, the Federal Revenue Service disallowed the corresponding credits. The zero rate will be repealed on January 1, 2027.

The Private Ruling is limited to credits relating to self-generated and self-consumed electricity and does not address the taxation of the Distribution System Use Tariff (TUSD).

The ruling also states that expenditures on self-production or self-generation of electricity may generate input credits when the electricity is used in the provision of services or in the production or manufacture of goods for sale. For this purpose, the expenditures must be linked to goods or services subject to payment of PIS and Cofins and must take into account the legal entity’s characteristics, including the percentage of self-generated electricity effectively used as an input.

COTEPE/ICMS updates SIGAS rules and accreditation of natural gas market participants

On September 11, 2026, the Permanent Technical Commission on ICMS (COTEPE/ICMS) issued acts updating the rules governing the Information System (SIGAS), applicable to transactions involving the movement of natural gas and pipeline natural gas transportation services, as well as the accreditation of natural gas shippers, traders, and transporters.

The new rules provide that the information required under clause four of SINIEF Adjustment No. 19 of July 3, 2026 must be reported through SIGAS, including data on the consignor, recipient, entry and exit points, transporter, natural gas volume and energy content, gas used in the transportation system, and the calculation base, rate, and amount. Development and maintenance of the system will be funded by pipeline transportation service providers for the benefit of the federative unit responsible for its management.

The State of Rio de Janeiro will remain responsible for the development, hosting, and security of SIGAS. The system will have a national manager elected by COTEPE/ICMS and a responsible representative in each State. If the national manager is replaced, all rights, information, and permissions necessary to administer and maintain the system, including the source code, must be transferred to the successor.

The accreditation rules were also updated. Natural gas shippers, traders, and transporters must obtain accreditation by express request to the State Finance, Revenue, and Taxation Secretariats, pursuant to clause two of SINIEF Adjustment No. 19/2026. Accreditation will give rise to a presumption that the taxpayer satisfies the applicable technical and operational requirements.

The acts also repeal a provision of COTEPE/ICMS Act No. 55/2019 governing the recording of natural gas quantities, as well as a provision under which the duties of the national manager and the State representatives were set forth in the Network Operations Manual.

The new provisions enter into force on the date of publication, with effects as from October 1, 2026 for the obligations set forth in SINIEF Adjustment No. 19/2026 and the rules on withdrawal of accreditation.

Acre

Acre regulates use of the Electronic Content Declaration

In a Decree published in an extraordinary edition on September 2, 2026, the State of Acre regulated the Electronic Content Declaration (DC-e), a document used to accompany the transportation of goods when tax documentation is not otherwise required.

The Decree also regulates the Auxiliary Electronic Content Declaration (DACE), which must accompany the transportation and include, among other information, the access key, barcode or QR Code, and the DC-e authorization protocol number.

Cancellation may be requested within 24 hours after authorization for use, provided that transportation has not begun. For documents issued through systems made available by marketplaces or the Brazilian Postal Service (ECT), the period will be up to 15 days.

The Decree entered into force on the date of its publication and applies from April 6, 2026.

Amapá

Amapá is authorized to grant deemed ICMS credit on marine diesel oil

On September 9, 2026, the National Council for Fiscal Policy (Confaz) published an ICMS Agreement authorizing the State of Amapá to grant a deemed ICMS credit corresponding to up to 62.5% of the ad rem tax rate applicable to transactions involving marine diesel oil. The benefit covers fuel supplied to vessels used in petroleum and natural gas research, exploration, and production activities, as well as in the logistics movement of petroleum and petroleum products, exclusively in transactions related to the Morpho well located in the Foz do Amazonas Basin.

The benefit will depend on regulations to be issued by the State of Amapá establishing the applicable conditions, limits, and procedures, and appropriation of the corresponding credit will not be permitted.

The Agreement will take effect on the date its national ratification is published and will apply through December 31, 2032.

Goiás

Goiás establishes rules for validation of ICMS tax incentives used without compliance with conditions

In a law published on September 10, 2026, the State of Goiás established rules for validating the use of ICMS tax incentives and financial-tax incentives where a taxpayer enjoyed preferential treatment without satisfying certain conditions established by State law.

The measure covers noncompliance with conditions relating to payment of contributions to the Goiás State Social Protection Fund (PROTEGE GOIÁS), timely payment of ICMS liabilities owed by the taxpayer or for which it is liable or acts as a substitute taxpayer, and the absence of tax liabilities enrolled in the State’s active debt registry.

The validation applies to assessed tax liabilities, whether or not enrolled in the State’s active debt registry and even if already subject to judicial collection, where the relevant taxable events occurred through December 31, 2023. To participate, the taxpayer must cure the unmet condition by paying the corresponding amounts due and filing an application with the State Secretariat of Economy.

The related tax liability will be extinguished subject to a condition subsequent consisting of approval by the competent authority, and amounts due in respect of the unmet conditions may be paid in installments in accordance with applicable law.

Participation must be formalized by November 3, 2026 through payment in full of the amounts relating to the unmet condition or, in the case of an installment plan, payment of the first installment.

The Law entered into force on the date of its publication.

Goiás regulates granted ICMS credit for investments in electricity networks

In a Normative Instruction published on September 10, 2026, the State of Goiás established procedures and criteria applicable to granted ICMS credits for priority investments in electricity network infrastructure, pursuant to Decree No. 10,706/2025.

The benefit may be used to amortize the investment or the electricity consumer’s financial contribution to electricity network infrastructure works in the State. The measure covers new connections to the distribution or transmission system, increases in the capacity of existing connected loads, and works carried out by generators to connect to the distribution grid that qualify as restricted-interest installations, subject to the conditions set forth in the Normative Instruction.

Projects with an investment value of at least BRL 1 million are eligible. The portion of the investment eligible for amortization is 25%, plus additional percentages based on structural scale, priority location, and renewable energy criteria. The total percentage is capped at 60% of the investment amount, and the granted credit may not exceed BRL 50 million per project.

The grant is subject to budgetary and financial availability, satisfaction of the eligibility criteria, and submission of the required documentation. The Normative Instruction enters into force on September 25, 2026 and revokes SGG Normative Instructions Nos. 4/2025 and 5/2025.

Pará

Pará regulates advance ICMS payment by shippers from other States

On September 3, 2026, the State of Pará issued a Normative Instruction establishing procedures for advance ICMS payment by shippers of goods located in other States that elect the special regime provided for under the State ICMS Regulation. The tax must be paid by the 15th day of the month following the month in which the goods leave the shipper’s establishment.

The regime applies to the goods listed in Appendix I to Annex I of the Regulation, using the value-added margins established for those products, except for motor vehicles sold through direct billing to the consumer. The Normative Instruction entered into force on the date of its publication and applies from July 1, 2026.

Paraná

Paraná allows deferral of the ICMS rate differential for electricity transmission concessionaires

On August 31, 2026, the State of Paraná published a Decree allowing deferral of the ICMS rate differential on interstate acquisitions of goods intended to form part of the permanent assets of a public-service electricity transmission concessionaire.

The treatment requires the recipient company to be accredited by the Brazilian Electricity Regulatory Agency (Aneel), the goods to form part of investments in the construction of transmission lines and expansion of substations in Paraná, an increase in direct and indirect job creation, and priority hiring of labor within the State.

The deferral applies only to transactions destined for an ICMS taxpayer, subject to Articles 4, 18, and 19 of Decree No. 7,721/2024. The deferral period ends upon the sale or disposal of the asset, and the rate differential must be paid, through voluntary regularization, in the month of the sale or disposal.

The Decree entered into force on the date of its publication.

Rio de Janeiro

Rio de Janeiro regulates cancellation and replacement of national-standard NFS-e

On September 3, 2026, the Rio de Janeiro Municipal Revenue Department’s Coordination Office for the Tax on Services of Any Nature (ISS) and Fees issued an Ordinance establishing procedures for cancellation and replacement of the national-standard Electronic Service Invoice (NFS-e), cancellation of the ISS payment slip, and inclusion of credits in Nota Carioca.

Under the Ordinance, cancellation of an NFS-e will be permitted only when the service was not provided, the invoice was issued in duplicate, or there is an entry error that cannot be corrected through system replacement. The issuer must complete the procedure within 360 days, directly through the management system dashboard or by application programming interface (API).

Replacement of an NFS-e, applicable when the service was provided and information must be corrected or amended, is subject to the same deadline. In successive replacements, the period will be counted from issuance of the first invoice. After 360 days, the taxpayer must request a tax review for cancellation and issue a new NFS-e.

The ISS payment slip may be canceled when no payment has been made and there has been no full settlement using available credits. In the event of a duplicate payment, the overpaid amount will automatically be made available as a credit to offset liabilities.

The Ordinance applies from January 1, 2026.

Rio Grande do Norte

Rio Grande do Norte updates ICMS rules on natural gas, communication services, and tax documents

On September 3, 2026, the State of Rio Grande do Norte issued a Decree extending through December 31, 2026 two ICMS calculation base reduction treatments. The first applies to interstate transactions with taxpayers involving the products listed in Article 1 of Law No. 10,147/2000 and permits deduction of PIS/Cofins amounts relating to subsequent transactions when charged on an aggregated basis. The second preserves the reduction applicable to interstate transactions involving new tires and inner tubes where the related revenue is subject to PIS/Pasep and Cofins under Law No. 10,485/2002.

Beginning October 1, 2026, the Decree also introduced differentiated treatment for transactions involving the movement of natural gas and biomethane and for pipeline transportation services. The regime applies to establishments located in the State that are duly accredited and listed in an act of the Permanent Technical Commission on ICMS (COTEPE/ICMS). It also provides for transaction controls through the Information System (SIGAS) or, until the system becomes available, through monthly reports, and permits monthly consolidated issuance of tax documents by the fifth business day of the month following the taxable event, without changing ICMS payment deadlines. Specific rules were also established for the Electronic Invoice (NF-e) and Electronic Bill of Lading (CT-e).

For communication services provided to users located in the State, the act now requires the service provider to register with the Rio Grande do Norte ICMS Taxpayer Registry and issue the Electronic Communication Services Invoice (NFCom) under that registration. For contracts involving circuits or access points located in different States, the provider must register in each relevant State and issue the NFCom under the registration corresponding to the access location. If amounts are not separately identified, each tax document must state an amount equal to the total contract price divided by the number of points.

In addition, beginning October 5, 2026, retail taxpayers must issue an NF-e, model 55, instead of an Electronic Consumer Invoice (NFC-e), model 65, for transactions in which the purchaser may utilize an ICMS credit. Issuance of the NF-e will be a condition for credit utilization.

Santa Catarina

Santa Catarina amends NF-e issuance rules

On September 8, 2026, the State of Santa Catarina issued a Decree amending the State ICMS Regulation with respect to NF-e issuance in specific transactions and services. The regulated circumstances include transactions involving debit and credit notes.

The amendments cover sales for future delivery with advance payment, inventory losses, returns arising from total or partial refusal of delivery or inability to locate the recipient, and reductions in amounts or quantities when the outbound NF-e cannot be canceled.

The Decree specifies codes, Transaction and Service Tax Codes (CFOP), mandatory information, and references to tax documents applicable to each circumstance, and also requires reversal of the ICMS credit relating to lost goods.

For returns resulting from refusal of delivery or inability to locate the recipient, the Decree also requires specific events to be recorded by the recipient and the party responsible for transportation.

The rules apply from August 3, 2026.

São Paulo

São Paulo extends ICMS exemption for shipments to Free Trade Areas

In a Decree published on September 2, 2026, the State of São Paulo extended through December 31, 2026 the ICMS exemption applicable to outbound transactions involving domestically produced industrialized or semi-processed products intended for sale or manufacturing in Free Trade Areas.

The benefit, provided for under the São Paulo State ICMS Regulation, had been scheduled to remain in effect through September 30, 2026.

The Decree entered into force on the date of its publication.

Sefaz/SP defines ICMS calculation base for stand-alone shipments of goods with no transaction value

On September 10, 2026, the Finance and Planning Secretariat of the State of São Paulo (Sefaz/SP) published a Response to a Tax Ruling Request addressing the ICMS calculation base for stand-alone outbound transactions involving goods supplied as bonuses or as warranty replacements when no transaction value exists.

The ruling concluded that any disposition of goods constitutes a transaction involving the circulation of goods, regardless of the legal nature of the disposition or whether the recipient provides financial consideration. Accordingly, Sefaz/SP stated that bonus shipments and warranty replacements are subject to ICMS.

For stand-alone bonus shipments where no transaction value exists, the tax authority stated that the general criteria under the São Paulo State ICMS Regulation must be applied to determine the calculation base. The ruling concludes that, as a general matter, the acquisition or production cost of the goods is not the applicable benchmark for that purpose.

The ruling further notes that use of the cost of the goods is prescribed in specific circumstances, such as certain transfers between establishments of the same owner, and does not apply to free-of-charge shipments to third parties.

Municipality of São Paulo creates Working Group to align municipal legislation with amendments to the National Tax Code

On September 2, 2026, a Joint Ordinance issued by the São Paulo Municipal Tax Council (CMT) and the Municipal Tax Representation Office (RF) established a working group to propose amendments to municipal legislation to align it with changes to the National Tax Code (CTN) contemplated by Complementary Bill (PLP) No. 124/2022.

The studies will address the cap applicable to, and review of, aggravated and non-aggravated penalties imposed through ex officio assessments, the implementation of tax settlements, mediation, and arbitration at the municipal level, and the adaptation of Administrative Tax Proceedings (PAF) to the new procedural safeguards and self-regularization mechanisms.

The working group must also identify municipal rules that conflict with the new CTN provisions and submit a final report containing its diagnosis and a draft legislative proposal. The group will have 60 days from its establishment to complete its work, subject to extension upon a reasoned request by the coordination team.

Meetings will follow the schedule established in the minutes of the inaugural meeting, and the work will preferably be carried out digitally.

The Ordinance entered into force on the date of its publication.

This publication is intended for informational purposes only and does not constitute legal advice. Our Indirect Tax team remains available to provide specific legal guidance tailored to your business needs.