How to calculate the real cost of a transfer from Brazil: the VET

People who send money from Brazil usually compare one thing: the exchange rate. But what leaves your account is the sum of four parts: rate, spread, IOF tax and fees. The number that adds it all up has a name and is a Central Bank of Brazil rule: the VET, Valor Efetivo Total (total effective value).

This week the math got more sensitive. The PTAX selling rate for the dollar went from R$ 5.0377 on Friday (Oct 23) to R$ 5.5007 on Monday (Oct 26), a 9.19% jump in one day, and fell back to R$ 5.3346 on Tuesday (Oct 27).

The four parts of the cost

1. Reference rate. PTAX is the Central Bank of Brazil’s official rate, the average of four readings taken during the day. It is not the rate you get, but it is the yardstick for comparing.
2. Spread. The gap between the reference and the rate the provider applies. It is often built in, without showing up as a “fee”.
3. IOF. On a transfer made through a traditional FX transaction (bank or broker), Brazil’s tax is charged on the amount in reais. Today, a transfer to your own account or to a relative abroad pays 3.5%, and paying for a service abroad also pays 3.5% (Decree 6,306/2007, art. 15-B, as amended in 2025). Not every transfer goes this way: see the end of this article.
4. Fee. A fixed amount per transfer. It weighs a lot on small transfers and very little on large ones.

What the VET is

Central Bank Resolution BCB No. 277, art. 18, defines the VET in reais per unit of foreign currency, adding the exchange rate, taxes and fees. For transactions up to US$ 100,000, the provider must show the VET before you close.

VET = (amount in reais + IOF + fees) ÷ amount in foreign currency

Step by step with this week’s numbers

Example: sending US$ 1,000 to pay for a service in the United States through a traditional FX transaction, at the Oct 27 PTAX (R$ 5.3346). Offers A and B are hypothetical, with round numbers, just to show the math.

	Offer A	Offer B
Spread over PTAX	4%	1.5%
Rate applied	R$ 5.5480	R$ 5.4146
Amount in reais	R$ 5,547.98	R$ 5,414.62
IOF (3.5%)	R$ 194.18	R$ 189.51
Fee	R$ 120.00	R$ 0.00
Total leaving the account	R$ 5,862.16	R$ 5,604.13
VET	R$ 5.8622	R$ 5.6041
Cost above PTAX	9.89%	5.05%

For offer B, the math is:

1. Rate applied: 5.3346 × 1.015 = 5.4146.
2. Amount in reais: 1,000 × 5.4146 = R$ 5,414.62.
3. IOF: 5,414.62 × 0.035 = R$ 189.51.
4. Total: 5,414.62 + 189.51 + 0 = R$ 5,604.13.
5. VET: 5,604.13 ÷ 1,000 = R$ 5.6041 per dollar.

The gap between the two offers is R$ 258.03 on the same transfer. The IOF is almost the same in both; what changes is the spread and the fee.

What if the transfer has no IOF?

The 3.5% IOF applies to traditional FX transactions. Vai Remessas sends money through a virtual asset service provider (PSAV), with the exchange done via stablecoin, and currently charges no IOF in this model. For the same offer B, without the tax, the math becomes:

	Offer B with IOF	Offer B without IOF
Amount in reais	R$ 5,414.62	R$ 5,414.62
IOF	R$ 189.51	R$ 0.00
Total	R$ 5,604.13	R$ 5,414.62
VET	R$ 5.6041	R$ 5.4146

That is R$ 189.51 less on the same transfer. Tax rules change: check the total cost on screen before every transfer.

The shortcut that misleads: looking only at the rate

A fixed fee changes the winner depending on the amount. Compare two offers, also hypothetical: C with a 2.5% spread and no fee; D with a 1.9% spread and a R$ 40 fee.

Amount sent	Total with offer C	Total with offer D	Cheaper
US$ 300	R$ 1,697.80	R$ 1,727.87	C
US$ 5,000	R$ 28,296.72	R$ 28,171.08	D

At the Oct 27 PTAX, the two break even near US$ 1,207. Below that, the fixed fee weighs more; above it, the lower spread pays off. That is why the VET, which already adds everything up, is the fair way to compare.

Commercial rate and tourist rate

PTAX and transfers use the commercial rate. The tourist rate is the one for buying cash and travel cards: it tends to be more expensive, and the IOF on buying cash is also 3.5%. To pay a supplier or send money to family, the right reference is the commercial rate.

Do your own math

1. Take the rate the provider offers (or ask for the VET).
2. Multiply by the amount in foreign currency.
3. Add the IOF, if any (3.5% on traditional FX, in the cases above), and the fees.
4. Divide the total by the amount in foreign currency: that is your VET.
5. Compare the VET with the day’s PTAX. The difference, in percent, is your real cost.

What to watch

• PTAX in the coming days. After rising 9.19% on Monday and falling 3.02% on Tuesday, the dollar is still 5.89% above Friday (Oct 23).
• The next Focus survey (Nov 3, a Tuesday, because of the Finados holiday). The R$ 5.05 year-end median was collected before the jump; the market is likely to revise it.
• The nature of the transaction. The IOF depends on why you are sending money: export revenue, for example, has a zero rate. Check the classification before closing.

Frequently asked questions

Does every transfer pay IOF? No. The 3.5% applies to traditional FX transactions. On a transfer made through a PSAV with stablecoin, like Vai’s, no IOF is currently charged.

Is IOF charged on the fee? No. On traditional FX, it is charged on the amount in reais of the transaction.

Does paying for imported goods carry the same IOF? Not necessarily: payments for imported goods have their own rule. Check the nature of the transaction with your provider.

Where do I see the VET? A provider authorized by the Central Bank of Brazil must show the VET before the transaction, for amounts up to US$ 100,000.