Brazil. 
An ordinance extended the validity of VAT (Value Added Tax) applied to the sale of products in industry in the state of São Paulo.
The percentage of VAT applied to tax substitution on outputs of paints, varnishes and accessories destined for establishments located in the territory of São Paulo was maintained at 38%. These IVAs will be maintained until August 2018.
The decision was announced by the Secretary of State of São Paulo through Ordinance CAT 29/2016, published in the Official State Gazette on February 24.
The measure does not apply to goods going to other states, which continue with their current VAT taxes.
"In a joint work with Sitivesp, we requested the continuation of the validity of the current VAT, which had been granted to the construction materials sector, so that it could be extended to the paint sector. With this, we cease to have one more burden in this difficult period, since the price studies, which guide the periodic review of the VAT of the State of São Paulo, will be carried out only in 2018," said Tulio Vasconcelos, abrafati's controller.
