- Brazil is undergoing tax reform, replacing old indirect taxes with CBS and IBS starting in 2026.
- The transition will be gradual, with full implementation by 2033.
- CBS is federal, and IBS is state/municipal, forming a dual VAT structure.
- Tax is based on where goods or services are used, aligning with global standards.
- Compliance will require real-time updates and stricter reporting.
- Businesses must prepare systems and teams for new rules to avoid penalties.
- Pilot rates begin in 2026, with gradual increases until reaching 28% by 2033.
- The reform simplifies the tax system, replacing multiple taxes with a single rate.
- A new Selective Tax will apply to goods and services harmful to health.
Source: 1stopvat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Brazil"
- Overview of NF-e and NFC-e: Legal Background, Technical Architecture, and Fiscal Document Standards
- Brazil’s New Tax Era: Software-Driven Fiscalization and Compliance Challenges for Retailers
- Brazil Unifies Five Taxes Into Dual VAT, Modernising System and Cutting Compliance Costs by 60%
- Brazil’s Tax Reform: New CBS/IBS Rules for Non-Resident Digital Suppliers from 2026
- Q&A Highlights: Key Fiscalization Questions from “Brazil Enters a New Era” Webinar
