By majority, Brazil’s Supreme Federal Court (Supremo Tribunal Federal/STF) decided, on June 02, that ISS tax for health plans must be demanded by the municipality where the company providing services is established, confirming the effects of a precautionary measure granted in 2018 (ADI 5,835).
To Minister Alexandre de Moraes, rapporteur for the Direct Action of Unconstitutionality (Ação Direta de Inconstitucionalidade/ADI), the taxable event was not meticulously provided for by the complementary law and subsequent laws – and, therefore, the rule presents taxpayers with legal uncertainty and brings jurisdiction conflicts between municipalities.
Concerning the services provided by means of payment companies, the supervening loss of the object of the lawsuit was recognized, given that Complementary Law 175/2020 established that taxation should occur at the service provider’s location.
For more information, please contact the BTLAW Tax team at([email protected]).