Farm creates group to implement split payment – 10/02/2024 – Brasília Hoje

The Ministry of Finance formalized this Wednesday (2) the creation of a working group to deal with the implementation of “split payment”, the new collection system provided for by the Tax Reform.

The Treasury classifies the mechanism as a “fundamental piece” of the reform. According to the ministry, it will contribute to reducing default, evasion and fraud in the country, and, therefore, should enable a lower reference rate for VAT (Value Added Tax).

The GT will be coordinated by the director of the Extraordinary Secretariat for Tax Reform, Daniel Loria. It will be composed of representatives from the Federal Revenue, the National Committee of State Finance Secretaries (Comsefaz), the National Confederation of Municipalities (CMN), the National Front of Mayors (FNP), the Central Bank and entities from the financial sector.

According to the transition schedule for the new consumption taxation system, the “split payment” will have a testing phase in 2026 and should operate from 2027. The mechanism intends to allow the collection of future consumption taxes — CBS and IBS — already at the moment of financial settlement of the commercial transaction.

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