# Brazil STJ rulings on banking taxation and liability > Live situation record from CLSTR: https://clstr.news/situations/brazil-stj-rulings-on-banking-taxation-and-liability > Updated: 2026-08-12T18:46:18.000Z. Sources: 4. Developments: 2. The Superior Tribunal de Justiça (STJ) in Brazil has issued several rulings affecting the banking sector regarding taxation and liability. In one decision, the court’s 1st Panel ruled that personalized bank smart cards are not subject to the state tax ICMS. The court determined that because these cards are custom-made for specific clients and tied to service contracts, they function as services subject to municipal tax (ISS) rather than general commercial merchandise. In a separate ruling, the STJ’s Third Panel addressed liability for digital fraud. The court decided that financial institutions are not automatically liable for losses from ‘fake call center’ scams. Instead, compensation requires proof of a concrete failure in banking services, such as an inability to identify transactions that are incompatible with a client’s profile. This decision complements existing precedents by focusing on whether an institution had the technological capacity to identify and interrupt fraudulent operations. ## Timeline ### 2026-08-12: STJ limits bank liability for digital fraud Brazil's STJ ruled that banks are not automatically liable for 'fake call center' scams, requiring proof of service failure to mandate compensation for fraudulent transactions. 2 sources. https://clstr.news/cluster/stj-limits-bank-liability-for-digital-fraud ### 2026-08-08: Brazil STJ rules bank smart cards are not subject to ICMS Brazil's Superior Tribunal de Justiça ruled that personalized bank smart cards are subject to municipal service tax (ISS) rather than state ICMS, as they are custom services rather than general merchandise. 2 sources. https://clstr.news/cluster/brazil-stj-rules-bank-smart-cards-are-not-subject-to-icms --- Cite as: Brazil STJ rulings on banking taxation and liability. CLSTR, https://clstr.news/situations/brazil-stj-rulings-on-banking-taxation-and-liability