THE COMPETENCE CONFLICT REGARDING THE STREAMING TAXATION

Abstract

The main purpose of this paper is to expose a critical view of the competence conflict developed between states and municipalities, in virtue of the streaming taxation. To achieve this criticism, the definition of streaming and its modus operandi is used to reach which tax rule best suits to its functions. Therefore, the concepts of “services”, “communication” and “goods” are analyzed to identify the differences between the tax on services (ISS) and the tax on the circulation of goods (ICMS). In addition, a brief jurisprudential analysis is carried out to comprehend the current understanding of the Superior Courts in relation to the operation of this new technology, as well as in relation to the conflict of competence between the tax on services (ISS) and the tax on the circulation of goods (ICMS). Lastly, it reaches a conclusion that is favorable to the non-incidence of ICMS and ISS on the streaming operations, and a criticism is constructed, involving not only the taxation of streaming, but the taxation of the new technologies that are appearing in society.