Brazil Tax Reform: How the Dual VAT Model (CBS and IBS) Will Impact e-Invoicing

Brazil Publishes Regulations for New Dual VAT System (CBS & IBS), Mandating e-Invoicing Updates by August 2026

Brazil has officially published regulations for its new Dual VAT system, CBS (federal) and IBS (state/municipal), which will replace five existing taxes to simplify its complex tax system, with companies required to include CBS and IBS tax information in electronic tax documents starting August 1, 2026.
This reform necessitates significant updates to e-Invoicing layouts, tax validation rules, and electronic invoicing systems across a wide range of electronic tax documents (e.g., NF-e, NFC-e, CT-e) to comply with the new fiscal reporting requirements.
The implementation will be gradual, with CBS collection starting in 2027 and IBS in 2029, leading to the complete elimination of old taxes by 2033, and also includes the introduction of an alphanumeric CNPJ for new registrations from July 2026 and a new Electronic Air Transport Ticket (BP-e TA) for the aviation sector.

Source Edicom

Brazil issues key regulations for new IBS and CBS tax reform

Brazil has launched a major indirect tax reform, replacing five taxes (PIS, COFINS, IPI, ICMS, ISS) with two VAT-style taxes: CBS and IBS, with phased rollout through 2033.
Decree 12,955 sets the operational framework for CBS and shared CBS/IBS rules, including standardized classifications, unified registration, electronic invoicing, non-cumulative credits, export immunity, split payment, and sector-specific regimes.
Resolution CGIBS No. 6 establishes IBS and CBS rules, including destination-based taxation, platform liability, state/municipal rate-setting, cashback for low-income families, and special regimes such as Manaus Free Trade Zone protections and transitional test rates.
Joint Ordinance MF/CGIBS No. 7 confirms the shared rules structure and the division between common provisions and tax-specific rules for CBS and IBS.