Imposto sobre Serviços

Imposto sobre Serviços

Imposto sobre Serviços is charged on advertising costs in Brazil. In addition, businesses are required to keep their tax information up to date.

In Brazil, billing is managed by Microsoft do Brasil Importação e Comércio de Software e Games LTDA. Effective 13 February 2018, Bing Ads is required to charge Imposto sobre Serviços (ISS) at 2.9% on advertising costs in Brazil. (Note: tax rate is subject to change.)

You'll be asked for your CNPJ or CPF number when you sign up for Bing Ads and each time you create a new account. Along with a valid business address, you'll need that tax ID on file in order to transact with Bing Ads. Both items are required to generate a Nota Fiscal eletrônica that documents a transaction.

Bing Ads cannot provide guidance on tax or VAT. Please contact your tax advisor or local tax office if you have questions.

How to change your tax identification number

You'll be asked for your tax identification number when you sign up for Bing Ads and each time you create a new account. If you need to change that number, the instructions for editing your ID depend on whether you have one account or multiple accounts.

If you have one account expando image
  1. Click the gear icon gear icon, and then click Accounts & Billing.
  2. In the Business location and tax information section, click the pencil icon pencil icon.
  3. Select a Tax type: choose Personal to provide a CPF for a personal account, or choose Business to provide a CNPJ.
  4. Enter your CPF or CNPJ in the box.
  5. Click Save.
If you have multiple accounts expando image

If you have multiple accounts, you can update tax information for more than one account at a time as long as the accounts are similar (same account type, and if you are agency, the same client).

  1. Click the gear icon gear icon, and then click Accounts & Billing.
  2. Select the check boxes next to the accounts that you want to add or update the VAT registration number for.
  3. Click Edit, and then click Business location (Tax info).
  4. Select a Tax type: choose Personal to provide a CPF for a personal account, or choose Business to provide a CNPJ.
  5. Enter your CPF or CNPJ in the box.
  6. Click Save.

How is ISS applied to my account?

Effective 13 February 2018, the ISS is included as a gross up in any amount owed for postpay threshold and monthly invoice accounts. For prepay accounts, this 2.9% tax is deducted from payments. (Note: tax rate is subject to change.)

Regardless of how you pay, your billing document will include a separate line item for the ISS.

Postpay threshold and monthly invoice accountsexpando image

If you have a postpay threshold or monthly invoice account, the tax is included in the total amount. For example, if you owe a total of R$102.99, then R$100 is for ad spend and R$2.99 is for ISS. Here is the breakdown:
Tax basis: 1 - 2.9% = 0.971
Ad spend: R$100
Total amount due: R$100 / 0.971 = R$102.99
ISS amount: R$102.99 - R$100.00 = R$2.99

Important

For monthly invoice accounts, the insertion order budget only applies to ad spend. If you have a strict budget limit, you will need to account for taxes.

Prepay accountsexpando image

If you have a prepay account, the ISS is deducted from your payment. For example, if you make a R$100 prepayment, your account balance will increase by R$97.10 and the remainder of your payment (R$2.90) will cover the 2.9% tax. Here is the breakdown:
Prepay amount: R$100
Tax basis: 1 - 2.9% = 0.971
Account balance increase: R$100 * 0.971 = R$97.10
Amount held for ISS: R$100 - R$97.10 = R$2.90

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