- Brazil approved PLP 108/2024 to implement a new dual VAT system, replacing PIS, COFINS, ICMS, and ISS with a federal CBS (8.8%) and a state-municipal IBS (17.7%) between 2026 and 2033.
- A new Selective Tax will replace the federal excise tax (IPI) on products like alcohol, tobacco, and sugary drinks.
- The law establishes a national IBS authority to collect and distribute tax revenues, issue binding rules, and end competing state tax regimes.
- Special VAT rules and anti-evasion measures are introduced for sectors such as financial services, energy, digital platforms, and property rentals.
- Social measures include VAT cashback for low-income households and options for small businesses, with a full transition to the new system expected by 2033.
Source: fiscal-requirements.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.
Latest Posts in "Brazil"
- Brazil Launches Automated Split Payment VAT System to Combat Fraud and Modernize Tax Collection
- Minas Gerais Mandates Accreditation for Fuel Retailer Invoice Software Starting February 2026
- Brazil Implements Dual VAT: New Law Details Governance, Compliance, and Sector-Specific Tax Rules
- Brazil Adopts Dual VAT System: Key Amendments Clarify Compliance and Sector-Specific Indirect Tax Rules
- Brazil’s 2026–2032 Tax Reform: Transition to Dual VAT System and E-Invoicing Compliance
