Brazil Introduces New VAT Regulations: CBS, IBS, and Tax Relief Schemes for Consumers

• Brazilian Government tables regulations for new federal
• and state-level value-added taxes
• New VAT regime to include federal value-added tax CBS and state-level VAT IBS
• Social security contributions PIS and Cofins to be phased out
• IBS and selective tax to replace IPI, ICMS, and ISS
• IBS and CBS to be introduced in 2026 and 2027
• ICMS and ISS to be phased out starting in 2029
• Average combined rate of CBS and IBS to be 26.5 percent
• Regulations to govern administration, collection, and enforcement of levies
• Split payment mechanism and tax relief scheme for consumers included in regulations
• 60 percent reduction for various goods and services, including education, health, and food
• Concessionary arrangements for real estate sector and special tax rules for minerals and energy sectors
• Tax rules for financial services to be set out in regulations

Source: answerconnect.cch.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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