Brazil’s Complementary Law No. 227/2026, published on 13 January 2026, formally establishes the IBS Management Committee (CGIBS), turning the new IBS from a constitutional concept into an operational tax with centralized rules for administration, audits, disputes, and revenue sharing. While it introduces no immediate taxpayer obligations, the law confirms a single national IBS administration that will replace fragmented ICMS and ISS systems, making 2026 a critical preparation year for businesses to align data, systems, and governance for the transition
Brazil: New Law Marks the Operational Launch of IBS Governance
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Brazil
Author: Ivana Picajkić
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Fiscal subject related
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Content accuracy validation date:
26.01.2026
Content accuracy validation time:
08:09h
The Complementary Law No. 227/2026 was published on January 13, 2026. This law officially creates the IBS Management Committee (CGIBS) and sets the rules for how IBS (Goods and Services Tax) will be governed, administered, and disputed under Brazil’s Tax Reform.
This is an important step because it turns IBS from a constitutional idea into a fully operational tax system, with clear rules on management, coordination between governments, and revenue sharing.
The law formally establishes the CGIBS (the IBS Management Committee) as the authority responsible for:
- Administering IBS,
- Collecting the tax,
- Auditing taxpayers,
- Distributing revenue to states and municipalities.
The CGIBS will work through a joint system involving federal, state, and municipal tax authorities.
Over time, this centralized model will replace the current fragmented systems used for ICMS and ISS, which will be phased out during the transition period.
The law also defines key operational rules, including:
- How administrative tax disputes related to IBS will be handled,
- How IBS revenue will be shared between states, municipalities, and the Federal District,
- Mechanisms to ensure uniform application of IBS across Brazil.
These measures aim to reduce regional differences and increase legal certainty.
The law does not introduce immediate new obligations for taxpayers. However, it confirms that IBS will be managed through a centralized and standardized national system, which will affect audits, controls, and data analysis in the future.
Businesses should therefore start preparing to:
- Adapt to a single national tax administration model,
- Improve data quality and consistency, especially in electronic tax documents,
- Plan technology and system changes to support future audits, reporting, and dispute processes.
The publication of this law confirms 2026 as a key preparation year. Decisions made now about tax governance, data structure, and technology will be critical to reducing compliance risks during the IBS transition period.
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