- Brazil is implementing a new VAT system with two main taxes: federal CBS (8.8%) and state/municipal IBS (17.7%), replacing PIS, COFINS, ICMS, and ISS between 2026 and 2033.
- A national IBS authority will manage tax collection, revenue distribution, and issue binding rules, ending competing state tax regimes.
- Special VAT rules and anti-evasion measures are introduced for sectors like financial services, energy, digital platforms, hospitality, fuels, and property rentals.
- Social measures include VAT cashback for low-income households and simplified options for small businesses.
- Existing ICMS credits will transfer to IBS, and PIS/COFINS will be fully replaced by CBS from 2027, aiming to complete VAT reform by 2033.
Source: fiscal-requirements.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.
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