Crossborder lease of aircraft subject to state vat

The 1st chamber of Brazil’s Superior Court of Justice has ruled that the state VAT (ICMS) applies on import of aircraft brought into the country under a crossborder lease agreement (arrendamento mercatil). The decision represents a change into the court’s prior position, particularly due to a Superior Court’s decision ruling that any entry of imported goods, carried out by individuals or companies for any purposes, is subject to ICMS. (Special appeal No. 823956)