- Brazil begins transitioning to a dual VAT system in 2026, replacing PIS, Cofins, ICMS, and ISS with CBS (federal) and IBS (state/municipal).
- Rules for IBS and CBS were published on April 30, 2026, and 2026 serves as a test phase with a combined 1% rate offset against existing PIS/Cofins.
- From August 2026, regular-tax businesses must report CBS and IBS fields on NF-e and NFC-e documents, with penalties for non-compliance.
- In September 2026, Simples Nacional businesses must choose their tax election and collection model for the first half of 2027.
- CBS becomes fully effective in 2027, while IBS is phased in from 2029 to 2033, completing the new system by 2033.
Source: riotimesonline.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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