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Summary:

This article problematizes the effectiveness of the principle of tax neutrality in the new Brazilian consumption taxation model established by Constitutional Amendment No. 132/2023, with special attention to the absence of a legal provision on the return of IBS/CBS in the event of default by the end consumer. The object of the research is the normative structure of dual VAT in Brazil and its compliance with constitutional principles and good international practices. The problem question that guides the investigation is: maintaining the incidence of IBS/CBS on defaulted operations is compatible with the constitutional principle of tax neutrality, as provided for in art. 156-A, §1, of the Federal Constitution? It is concluded that the absence of a specific legal provision for the refund of tax in cases of default violates economic neutrality, as it prevents the tax burden from being passed on to the consumer, transferring the tax burden to the rightful taxpayer. It is therefore proposed the direct application of the principle of neutrality as an autonomous normative foundation and the possibility of judicial action to fill the legislative gap.

Full article

DOI:https://doi.org/10.21783/rei.v11i2.921

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