Why am I charged ICMS in Brazil?

ICMS is a state sales tax applicable in Brazil. It applies to all Skype purchases made through local Brazilian payment methods offered by our partner, GT Group.

In Brazil, you have to pay the local tax of 25% (ICMS) instead of the 15% Luxembourgian VAT, which only applies to EU residents.

You are charged ICMS when you’re using a local payment method, such as Boleto Bancário or any local credit cards, as the payment is made available by our local telecommunications partner, GT Group. Payments using these local methods always need to be made in the local currency, Brazilian Real (BRL).

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