- Brazil is replacing its fragmented indirect tax system with a dual VAT model: CBS (federal) and IBS (state/municipal), with a gradual transition from 2026 to 2033.
- Nonresident sellers with taxable operations in Brazil must register for CBS/IBS and comply with the new tax rules, regardless of B2B or B2C status.
- The new rules apply to imports, cross-border services, intangibles, and other operations with a Brazilian nexus.
- 2026 is a test year with symbolic tax rates; full implementation and real rates begin in 2027, with complete transition by 2033.
- Digital platforms facilitating transactions to Brazilian customers are also impacted by these new compliance obligations.
Source: kpmg.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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