- Brazil approved a major VAT reform in December 2023, replacing five consumption taxes with a Dual VAT: federal CBS and state/municipal IBS.
- A July 2026 decree delayed some CNPJ registration and invoicing duties for individuals and certain rural producers until January 1, 2027.
- For most businesses, August 3, 2026 is a key deadline: electronic invoices must include new CBS and IBS fields or they will be rejected.
- During 2026, a temporary 1% test rate applies for information only, but missing the new invoicing fields may trigger a 1% penalty on the transaction value.
- Real CBS collection starts in 2027, IBS rolls out from 2029, and the old tax system is expected to end by 2033.
Source: globalvatcompliance.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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