- Brazil is introducing a new federal CBS tax and state IBS tax on digital services, effective from 2026, as part of a VAT regime replacing four existing taxes.
- Non-resident providers of digital services, including marketplaces and platforms, must collect and remit CBS and IBS if their services are consumed in Brazil.
- Taxable digital services include streaming, SaaS/cloud software, platform intermediation, online advertising, and other internet-based services.
- The combined tax rate will be about 26.5% (CBS 8.8% + IBS 17.7%), with phased implementation through 2033.
- B2C transactions are targeted for these obligations, while B2B customers can self-account; digital platforms are liable if they control T&Cs, payments, or delivery.
Source: vatcalc.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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