- Brazil’s consumption tax reform, introducing a VAT system with CBS and IBS, enters a test phase in January 2026, requiring invoices at a combined 1% rate but waiving payment if ancillary obligations are met.
- Key regulations, including Supplementary Law 214/2025 and Supplementary Bill of Law 108/2024, are still pending final approval and are crucial for the reform’s operationalisation.
- Additional regulations and technical adjustments to tax documents are needed, with over 100 references to “regulations” in the main law.
- Businesses face uncertainties due to unresolved rules and the need for further guidance before the full transition phase begins in 2027.
Source: internationaltaxreview.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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