The broad base of CBS and IBS taxes means that they will be levied on transactions involving material (tangible) and immaterial (intangible) goods, services and rights, indistinctly, including both domestic and import transactions.
The adoption of a broad base seeks to meet some demands of modern society, since the emergence of transactions that do not represent the transfer of goods or provision of services ended up leading to the obsolescence of ICMS and ISS.
These taxes no longer included, for example, the classification of operations such as the sale of software or the provision of space for online advertising, leading lithuania telegram data to a discussion regarding the nature of these operations – whether they would be considered the sale of goods or services.
Furthermore, overcoming a criticism of the current system, the new taxes will be calculated “externally”, that is, they will not be included in the price of the good or service, but will be calculated separately, via the highlighting of the operation.
Non-cumulativity
One of the changes introduced by the reform is the adoption of the principle of non-cumulativeness. This will allow taxpayers to take full credit for taxes paid in previous stages of the production chain, thus avoiding overlapping taxes.
As a result, each taxpayer along the chain will only bear the tax corresponding to their increase in value, and may be credited for the amount already taxed by previous taxpayers in the chain.
The central idea is to eliminate the cumulative and cascading effects of certain taxes. This is because, in the current scenario, the different rules on the appropriation of credits for inputs used in production cause tax residues to remain in the consumption chain. In addition, the difficulty in receiving credits related to inputs encourages judicialization.
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