Full non-cumulativity is the main promise of the new Dual VAT system, but achieving it will require a level of technical precision most companies do not yet have. The end of the cascading tax effect is not an automatic benefit. With the change in regime, it becomes a right that must be proven invoice by…

Brazil’s Tax Reform is reshaping the tax system and redefining where risk truly lies within companies. With the introduction of the dual VAT system and the adoption of split payment, the relationship with suppliers goes beyond operational interaction and now has a direct impact on cash flow, margins, and compliance. In practice, the right to…

Tax Substitution (ST) is undoubtedly one of the most complex and burdensome aspects of Brazil’s current tax system, and its elimination is one of the most anticipated promises of the Tax Reform. However, at Synchro, we believe it is important to set realistic expectations: the end of this regime will not happen immediately. The transition…

Tax neutrality is the concept that defines the survival of Brazilian companies today. With the official launch of the Dual VAT testing phase and the 0.1% (IBS) and 0.9% (CBS) rates already appearing on invoices, the “magic” of state tax incentives has given way to the cold reality of operational efficiency. The time when companies…