- Brazil’s pilot implementation phase for the new CBS (federal) and IBS (state/municipal) consumption taxes began on January 1, 2026, integrating these taxes into the country’s financial infrastructure, including e-invoicing and compliance.
- During a three-month testing period, businesses must populate CBS and IBS fields on invoices but will not face penalties for non-compliance, paving the way for full CBS operations in 2027 and phased IBS implementation from 2029 to 2032.
- The reform aims to simplify Brazil’s complex indirect tax system, currently burdened by multiple taxes, and is expected to enhance compliance, reduce costs, and improve transparency, ultimately boosting productivity and GDP.
Source Innovate Tax
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Latest Posts in "Brazil"
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