Brazilian Supreme Court Decides on ISS Levy Involving Advertising Materials

On March 21, 2022, the Brazilian Supreme Court ("STF" or “Court”) published a decision related to the trial of Direct Action of Unconstitutionality (“ADI") 6034, in which the Court ruled the Tax on Services (“ISS”) levy on the addition of advertising texts and materials.

The lawsuit, filed by the State of Rio de Janeiro, intended for the analysis of the constitutionality of item 17.25 on the list attached to Complementary Law 116/03, included by Complementary Law 157/16.

According to the STF, the complementary law is meant to decide on tax matter conflicts between states and municipalities.

Thus, item 17.25 on the list attached to Complementary Law 116/03 fulfills its role by stipulating the ISS levy on the addition of texts, drawings and other advertising and publicity materials in any way, except in books, newspapers and periodicals; in broadcasting services; and in audio files and free images.

The following ruling was made: "Sub-item 17.25 of the list attached to LC No. 116/03, included by LC No. 157/16, is constitutional, as it provides the levy of ISS, removing ICMS, on the addition of texts, drawings and other advertising and publicity materials in any way (except in books, newspapers, periodicals and in broadcasting services and free audio files and images)."

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