- Brazil launched a pilot phase for its new CBS (federal) and IBS (state/municipal) consumption taxes on January 1, 2026, integrating them into e-invoicing and compliance systems.
- New regulations for CBS and IBS will be published in 2026, followed by a three-month penalty-free testing period where businesses must fill out relevant invoice fields.
- Full CBS implementation is set for 2027, while IBS will be phased in from 2029 to 2032.
- Once fully operational, strict enforcement will begin, with penalties for non-compliance.
- The reform aims to simplify Brazil’s complex indirect tax system, reduce business costs, increase productivity, and improve transparency by replacing multiple taxes with a dual-VAT model.
Source: innovatetax.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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