Expense rules in Brazil.
All RFB rules: ICMS/ISS/PIS/COFINS, ajuda de custo, mileage rate and VAT recovery in Brazil.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 17–19% ICMS | Limited | CPMF rules |
| Travel meals | 17–19% | 100% reclaimable | Diária cap |
| Accommodation | 2–5% ISS | 100% reclaimable | NFE required |
| Fuel | 17–19% ICMS | 100% reclaimable | Business records |
| Train / flight | ICMS variable | 100% reclaimable | NFE required |
| Taxi / Uber | 2–5% ISS | 100% reclaimable | Receipt required |
| Client gifts | 17–19% ICMS | Not deductible | Brindes restrictions |
| Parking / toll | 2–5% ISS | 100% reclaimable | NFE |
Complex system
ICMS varies by state (17-19%).
2026 reform
New tax reform in 2026.
Retention
RFB records: 5 years.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | R$ 1,50/km | By company | Standard practice |
| Motorcycle | R$ 0,80/km | By company | Reduced rate |
MNC practice
Private sector standard.
Covers
Fuel + maintenance + insurance.
Records
Date, destination, km.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| São Paulo / Rio | R$ 250 | R$ 700 | R$ 950 |
| Brasília | R$ 250 | R$ 600 | R$ 850 |
| Senior executive | R$ 400 | R$ 1,200 | R$ 1,600 |
| Foreign — Lisbon | R$ 500 | R$ 1,300 | R$ 1,800 |
| Foreign — New York | R$ 800 | R$ 2,500 | R$ 3,300 |
MNC practice
Standard executive per diem.
Hotel separate
Lodging refunded on NFE.
No statutory rate
No mandatory RFB cap.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Brazil → EU | No reciprocity | — | No agreement |
| France | No reciprocity | — | No agreement |
| United Kingdom | No reciprocity | — | No agreement |
| Switzerland | No reciprocity | — | No agreement |
| USA | No recovery | — | Sales tax not recoverable |
| BR ICMS for foreign | None | — | No mechanism |
No B2B refund
No general B2B procedure.
2026 reform
New reform simplifies system.
Outbound
BR company can recover EU VAT if registered.
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ICMS 17–19%, ISS 2–5%, NFE OCR, MNC per diem, multi-currency BRL↔USD↔EUR↔CHF, 2026 reform ready: all the RFB rules above are natively integrated into Illizeo.
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