Brazil’s 2028 tax reform phase will focus on stabilizing CBS and Selective Tax (IS) after their 2027 launch and preparing for IBS from 2029. Businesses and software providers should use this period to adjust pricing, cash flow, tax credits, reporting, ERP systems, and compliance tools before the more complex transition begins.
Brazil Tax Reform: 2028 Set as Crucial Stabilization Phase Ahead of Gradual IBS Rollout
Public
Brazil
Author: Ljubica Blagojević
Category:
General information
Views:
468
Content accuracy validation date:
09.07.2026
Content accuracy validation time:
08:27h
Brazil’s transition to the new tax model will remain a major operational challenge after the 2027 introduction of CBS and the Selective Tax (IS). The year 2028 will not be a pause, but a stabilization and adjustment phase, focused on analyzing real fiscal data, identifying operational issues, and preparing for the next stage of the reform.
In 2028, the government and private sector will assess the actual economic impact of CBS and IS, including effects on revenue, inflation, consumer behavior, and sector competitiveness. Based on this analysis, authorities may issue new regulations, instructions, or decrees to clarify unclear rules and correct practical distortions. The IBS Management Committee is also expected to refine procedures and address taxpayer questions before IBS implementation begins.
For businesses, the reform’s impact will be especially visible in pricing, cash flow, and compliance. Sectors with long supply chains may benefit from broader credit recovery, while service businesses with fewer credits may need to review margins and pricing. The Selective Tax may also affect consumer prices and demand for certain products.
Cash-flow management will become more important because tax credits depend on effective tax collection in earlier stages of the supply chain. Companies will need to monitor supplier compliance to protect their credit rights. The cashback mechanism for low-income families will also need practical testing and technological adjustment to avoid creating excessive operational costs for retailers.
From an IT and compliance perspective, 2028 will require companies to stabilize CBS and IS reporting while preparing systems for the gradual introduction of IBS from 2029 and the future coexistence with ICMS and ISS during the transition.
For software houses, the strategic focus will shift from implementation to optimization. This includes fixing post-go-live issues, improving system stability, refining user experience, and using real CBS and IS data to develop tax analytics and BI tools. These tools can help clients understand their effective tax burden and make better business decisions.
Software providers should also begin architectural planning for the next phase of the reform. From 2029 to 2032, IBS rates will gradually increase while ICMS and ISS are reduced. In 2032, ICMS and ISS will be eliminated, and accumulated ICMS credits will be paid over 240 months. By 2033, Brazil’s new Dual VAT model, based on CBS, IBS, and IS, is expected to be fully implemented.
Overall, 2028 will be a critical year for testing, correcting, and optimizing the new tax environment. Companies, accountants, and software providers should use this period to improve compliance processes, strengthen system architecture, and prepare for the more complex IBS transition.
Other news from Brazil
Brazil Publishes Test CNPJs for Fiscal Document Homologation
Brazil
Author: Ivana Picajkić
Brazil's Federal Tax Authority released an Excel spreadsheet with simulated CNPJs and State Registration numbers for use in the homologation environment. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Brazil Technical Note 2026.004 v1.01: NF-e and NFC-e Schemas Updated for Alphanumeric CNPJ Format
Public
Brazil
Author: Ljubica Blagojević
Brazil
Author: Ljubica Blagojević
Brazil’s Technical Note 2026.004 v1.01 updates NF-e and NFC-e systems to support the new alphanumeric CNPJ format, which applies only to new registrations while existing CNPJs remain unchanged. The new CNPJ keeps 14 characters, with the first 12 positions alphanumeric and the last 2 numeric check digits. The change affects XML schemas, CNPJ fields, access keys, validations, barcode standards, DF-e... Read more
Brazil Technical Note 2026.002: NFGas Layouts Updated for New IBS, CBS, and ICMS Fields
Public
Brazil
Author: Ljubica Blagojević
Brazil
Author: Ljubica Blagojević
Brazil’s Technical Note 2026.002 updates NFGas for the Consumption Tax Reform, adding rules for IBS/CBS, cashback, SUFRAMA incentives, advance payments, and ICMS fields. For Normal Regime issuers, the IBS/CBS group becomes mandatory on August 3, 2026. Other validations enter production on August 31, 2026. NFGas issuers and software providers must update XML layouts, tax fields, validations, and re... Read more
Brazil Introduces Simplified DANFE Type 2: Key Visual and Operational Updates for 2026
Public
Brazil
Author: Ljubica Blagojević
Brazil
Author: Ljubica Blagojević
Brazil’s Technical Note 2026.003 v1.00 introduces the Simplified DANFE Type 2, allowing NF-e model 55 to be used in some end-consumer transactions usually covered by NFC-e model 65. The change is visual and operational only; it does not alter the NF-e XML, schemas, or validation rules. It defines the printed layout, QR code formats, consumer identification rules, contingency messages, and formatti... Read more
Brazil Technical Note 2025.002: NF-e and NFC-e Layouts Overhauled for New IBS, CBS, and IS Fields
Public
Brazil
Author: Ljubica Blagojević
Brazil
Author: Ljubica Blagojević
Brazil’s Technical Note 2025.002 IBS/CBS/IS updates NF-e and NFC-e for Tax Reform, adding new fields and rules for IBS, CBS, and IS. It introduces Group UB, item-level tax classification, Credit/Debit Notes, and rules for SUFRAMA, cashback, advance payments, references, and fuel taxation. For Normal Regime taxpayers, IBS/CBS fields become mandatory on August 3, 2026. ERP, POS, and invoicing system... Read more
Brazil Technical Note 2026.002 v1.00: Key NF-e and NFC-e Updates for Retail and E-Commerce
Public
Brazil
Author: Ljubica Blagojević
Brazil
Author: Ljubica Blagojević
Brazil’s Technical Note 2026.002 v1.00 updates NF-e and NFC-e rules for retail, e-commerce, and delivery. It introduces cStat 120 authorization with warning and the new Simplified DANFE Type 2, allowing NF-e use in some NFC-e-like transactions. It also adds stricter rules for CFOPs, buyer identification, QR codes, contingency, transport data, and invoice limits. Retailers, POS/ERP providers, and e... Read more