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Indirect taxes on Gelato API transactions in Brazil

The VAT treatment of materials printed and delivered in Brazil depends on the country of the billing address of the customer.  When a local Brazilian customer places order for print products on the Gelato website, it enters into a service contract with Gelato Brazil. The local Brazilian customers will receive an invoice from Gelato Brazil. Gelato Brazil will charge Brazilian customers: 1,65% PIS and 7,6% COFINS (i.e. 9,25% cumulative under APM), and 2% ISS (if Gelato Brazil is incorporated in São Paulo).

If the customer billing entity is outside Brazil and would like to pay for printed materials delivered in Brazil, Gelato AS will bill the customer for the printed material. Because Gelato does not have a PE (permanent establishment) in Brazil, no Brazilian VAT will be included on the invoice from Gelato AS to the non-Brazilian customer.

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