OECD Analyzes Brazil’s New Dual VAT Regimes and Transition Challenges in Latest Working Paper

• The OECD released a Working Paper analyzing Brazil’s new dual VAT regimes: the federal CBS and the state-level IBS.
• The paper addresses challenges in sharing VAT authority between federal and subnational governments, comparing Brazil’s approach to Canada and India.
• The new VAT system will phase out existing taxes like PIS, Cofins, IPI, ICMS, and ISS, introducing CBS, IBS, and a selective tax.
• Transition measures include reduced rates for CBS and IBS in 2026, with full implementation and phasing out of old taxes by 2033.
• The report also highlights the shift from origin
• to destination-based taxation and transitional offset mechanisms for businesses.

Source: answerconnect.cch.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.

---

---