A LEGAL ANALYSIS OF PROPERTY TAX COLLECTION IN BRAZIL: AN APPROACH FOCUSED ON THE PRINCIPLE OF EQUALITY

Abstract

The Brazilian Tax Reform introduced by Constitutional Amendment No. 132/2023 and regulated by Complementary Law No. 214/2025 brought significant changes to the taxation of consumption in Brazil, especially through the creation of the Tax on Goods and Services (IBS) and the Contribution on Goods and Services (CBS), both structured under the dual Value Added Tax (VAT) model. In this context, the service sector has become central to legal and economic debates concerning the impacts of the new tax system, particularly regarding its implications for the constitutional principle of tax equality. This study aimed to evaluate the adequacy of VAT/IBS taxation in the service sector in relation to the principle of tax equality, in light of the Tax Reform introduced by Constitutional Amendment No. 132/2023 and regulated by Complementary Law No. 214/2025. The research is qualitative in nature, adopting a deductive approach and a theoretical-dogmatic method. Data collection was conducted through bibliographic and documentary research, including the analysis of specialized doctrine, legislation, scientific articles, and constitutional provisions related to the topic. The results demonstrated that the Tax Reform presents important advances regarding the simplification of the tax system, the reduction of tax cascading effects, and the pursuit of greater fiscal neutrality. However, it was observed that the service sector may experience a significant increase in the effective tax burden, especially due to the limited possibility of tax credit utilization related to payroll expenses. It is concluded that the effective observance of the principle of tax equality will depend on the constitutional interpretation and balanced application of the new Brazilian tax system.