In Brazil, billing is managed by Microsoft do Brasil Importação e Comércio de Software e Games LTDA. Microsoft Advertising 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 Microsoft Advertising and each time you create a new account. Effective 1 January 2019, business accounts registered in the municipality of São Paulo must also provide a CCM registration number (Inscrição Municipal). Along with a valid business address, you'll need that tax ID on file in order to transact with Microsoft Advertising. Both items are required to generate a Nota Fiscal eletrônica that documents a transaction.
Microsoft Advertising cannot provide guidance on tax or VAT. Please contact your tax advisor or local tax office if you have questions.
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You'll be asked for your tax identification number when you sign up for Microsoft Advertising and each time you create a new account.
You'll be asked for your tax identification number when you sign up for Microsoft Advertising 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 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).
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.
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
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.
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