Brazil's tax reform simplifies its system by replacing five taxes with a Dual VAT model (CBS and IBS) and introduces a Selective Tax. It aims for transparency, reduced bureaucracy, and requires businesses to update electronic tax systems by 2026.
Brazil Tax Reform Brings Major E-Invoicing and Compliance Changes
Public
Brazil
Author: Ivana Picajkić
Category:
General information
Views:
21
Content accuracy validation date:
25.06.2026
Content accuracy validation time:
08:23h
Brazil is introducing a major tax reform to simplify its complex tax system.
The reform replaces five existing taxes with a new Dual VAT model. The new system will include CBS, a federal tax, and IBS, a state and municipal tax. A third tax, called the Selective Tax, will apply to products considered harmful to health or the environment.
The goal of the reform is to make taxation simpler, more transparent, and easier to manage for businesses. It should also reduce bureaucracy and improve tax control.
The transition will be gradual. CBS collection is expected to start in 2027, while IBS will be introduced gradually from 2029. The old taxes are expected to be fully replaced by 2033.
From August 2026, businesses will need to include CBS and IBS information in electronic tax documents. This means that companies will have to update their e-Invoicing systems, ERP systems, tax rules, validations, and document layouts.
The reform will affect many electronic fiscal documents, including e-Invoices, e-Receipts, e-Invoices for services, and others.
Brazil is also introducing technical updates, such as new fields for CBS and IBS, split payment documentation, changes to recipient acknowledgement deadlines, and the future use of alphanumeric CNPJ numbers for new company registrations.
For businesses, the reform is not only a tax change. It is also a major technology and compliance change, requiring system updates, process reviews, and preparation for new reporting and validation rules.
Other news from Brazil
Brazil Updates e-Receipt (NFC-e) and e-Invoice (NF-e) Schemas for Alphanumeric Tax Identification Number (CNPJ)
Brazil
Author: Ivana Picajkić
Brazil's Technical Note 2026.004, version 1.01, updates the NF-e and NFC-e electronic tax systems to support alphanumeric CNPJ formats, reflecting new rules for generating taxpayer IDs. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Brazil: Federal VAT (CBS) to Fully Replace PIS and COFINS from 2027
Public
Brazil
Author: Ivana Picajkić
Brazil
Author: Ivana Picajkić
Brazil’s tax reform will implement the new federal VAT (CBS) in 2027, replacing the complex PIS and COFINS taxes. Companies must overhaul their tax systems and align pricing to reflect a temporary 0.1 percentage point reduction in CBS. IPI rates will drop to zero for most goods, excluding products from the Manaus Free Trade Zone. New compliance rules with strict penalties will also be enforced, ma... Read more
New document was uploaded: Modern payment medias - Brazil
Brazil
Author: Ivana Picajkić
The purpose of this document is to provide a structured overview of modern payment media, including their general meaning, main categories, and practical role in commercial transactions. It explains how payment media have evolved from traditional cash-based instruments to digital, mobile, and instant payment solutions used in today’s retail and e-Commerce environments Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Reminder: Brazil Introduced New Federal VAT (CBS) and State VAT (IBS) Tax Rules for Digital Platforms and Foreign Suppliers
Public
Brazil
Author: Ivana Picajkić
Brazil
Author: Ivana Picajkić
Brazil’s new CBS/IBS dual VAT rules significantly expand tax obligations for foreign suppliers and digital platforms, requiring registration, electronic fiscal-document readiness, and future split-payment compliance from August 1, 2026, with financial exposure expected from 2027. Brazil has published new implementing rules for its indirect tax reform, introducing a new dual VAT system made up of t... Read more
Brazil Updates e-Invoice and e-Receipt Systems for Alphanumeric CNPJ.
Public
Brazil
Author: Ivana Picajkić
Brazil
Author: Ivana Picajkić
Brazil published Technical Note 2026.004 v1.00 to prepare NF-e and NFC-e systems for the new alphanumeric CNPJ format. The update is mainly technical but has broad system impact, requiring companies and providers to update databases, validations, APIs, XML schemas, access keys, and SEFAZ integrations before production starts on July 1, 2026. Brazil has published Technical Note 2026.004 version 1.0... Read more
Brazil Updates Rules for e-Invoices and e-Receipts under Tax Reform
Public
Brazil
Author: Ivana Picajkić
Brazil
Author: Ivana Picajkić
Brazil published NT 2025.002-RTC version 1.36, updating NF-e and NFC-e layouts and validation rules to support the new IBS and CBS tax reform framework. The changes affect returns, partial delivery refusals, credit/debit notes, and MEI validations, with testing from July 1, 2026 and production from August 3, 2026 Brazil has published version 1.36 of NT 2025.002-RTC, introducing new layout changes... Read more