{"id":48988,"date":"2026-02-13T15:43:33","date_gmt":"2026-02-13T14:43:33","guid":{"rendered":"https:\/\/amec.es\/brazil-launches-comprehensive-vat-reform\/"},"modified":"2026-02-13T15:47:31","modified_gmt":"2026-02-13T14:47:31","slug":"brazil-launches-comprehensive-vat-reform","status":"publish","type":"page","link":"https:\/\/amec.es\/en\/brazil-launches-comprehensive-vat-reform\/","title":{"rendered":"Brazil launches comprehensive VAT reform"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"48988\" class=\"elementor elementor-48988 elementor-48982\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-682e0ffd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"682e0ffd\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4e30cfc\" data-id=\"4e30cfc\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-75a9fea2 elementor-widget elementor-widget-heading\" data-id=\"75a9fea2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><a href=\"https:\/\/amec.es\/en\/category\/exclusive-alerts-and-trends\/\" rel=\"tag\">Exclusive alerts and trends<\/a><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-302cf69f elementor-widget elementor-widget-spacer\" data-id=\"302cf69f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3bab5b90 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"3bab5b90\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6b4162d1 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6b4162d1\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-74a4ef02\" data-id=\"74a4ef02\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-360083ce elementor-widget elementor-widget-heading\" data-id=\"360083ce\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Brazil launches comprehensive VAT reform<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1d8118d9 elementor-widget elementor-widget-spacer\" data-id=\"1d8118d9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-23463a12 elementor-widget elementor-widget-text-editor\" data-id=\"23463a12\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t13 de February de 2026\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-35d4cef1 elementor-widget elementor-widget-text-editor\" data-id=\"35d4cef1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Brazil is implementing a structural reform of its indirect taxation system aimed at simplifying the current model, reducing territorial distortions and aligning it with international best practices in consumption taxation.<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-47980076 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"47980076\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-18f377f9 elementor-widget elementor-widget-text-editor\" data-id=\"18f377f9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The reform replaces the previous system (based on multiple federal, state and municipal taxes with heterogeneous rules and fiscal accumulation) with a more homogeneous, non-cumulative and technically harmonized scheme.<\/p><h5><strong><span style=\"color: #ffffff;\">_<\/span><br>Architecture of the new system<\/strong><\/h5><p>The central axis is the introduction of a <strong>dual structure VAT<\/strong>, composed of two coordinated taxes that are applied <strong>on the same transactions<\/strong> (goods and services), but correspond to <strong>different levels of government<\/strong> and come into effect progressively.<\/p><p><strong>1. CBS &#8211; Contribution on Goods and Services (federal level)<\/strong><\/p><p>The <strong>CBS<\/strong> constitutes the federal VAT.<\/p><ul><li><strong>What it applies to<\/strong>: the sale of goods, the rendering of services and other taxable transactions carried out in Brazil.<\/li><li><strong>What it replaces<\/strong>: federal excise taxes (PIS, COFINS and IPI).<\/li><li><strong>How it works<\/strong>: it is non-cumulative, with full right to deduct input tax paid in previous stages.<\/li><li><strong>Where collected<\/strong>: at the place of final consumption (destination principle).<\/li><li><strong>When it is applied<\/strong>: after the initial adaptation phase, it becomes the main federal excise tax.<\/li><\/ul><p><strong><span style=\"color: #ffffff;\">_<\/span><br>2. IBS &#8211; Imposto sobre Bens e Servi\u00e7os (subnational level)<\/strong><\/p><p><strong>IBS<\/strong> is the subnational component of VAT.<\/p><ul><li><strong>To what it applies<\/strong>: to the same transactions taxed by the CBS (goods and services), including transactions between different states or municipalities.<\/li><li><strong>What it replaces<\/strong>: state and municipal excise taxes (ICMS and ISS).<\/li><li><strong>How it works<\/strong>: shares tax base, accrual and credit system with the CBS, eliminating cascading taxation.<\/li><li><strong>Where it is collected<\/strong>: in the territory where final consumption takes place, with automatic distribution of the collection among states and municipalities.<\/li><li><strong>When it is applied<\/strong>: it is introduced gradually, progressively replacing ICMS and ISS until the system is fully consolidated.<\/li><\/ul><p><br>In practice, <strong>CBS and IBS are applied together in the same transaction<\/strong>, are itemized in the invoice and form a single VAT system.<\/p><p><strong><span style=\"color: #ffffff;\">_<\/span><br>3. Selective Tax (IS)<\/strong><\/p><p>The <strong>Selective Tax<\/strong> is an additional and separate tax from the dual VAT.<\/p><ul><li><strong>To what it applies<\/strong>: only to certain goods and services legally defined by their negative externalities (health, environmental or other).<\/li><li><strong>What it replaces or complements<\/strong>: it rationalizes the logic of existing excise taxes, without being integrated into VAT.<\/li><li><strong>How it works<\/strong>: it is not non-cumulative and does not generate credit rights like VAT.<\/li><li><strong>When it applies<\/strong>: it is required only when the transaction affects goods or services expressly included in its scope, regardless of the CBS and the IBS.<\/li><\/ul><h5 data-start=\"134\" data-end=\"163\"><span style=\"color: #ffffff;\">_<\/span><br><strong>Implementation schedule<\/strong><\/h5><p data-start=\"165\" data-end=\"240\">The VAT reform will be implemented progressively between <strong data-start=\"222\" data-end=\"237\">2026 and 2033<\/strong>.<\/p><ul data-start=\"242\" data-end=\"702\"><li data-start=\"242\" data-end=\"365\"><p data-start=\"244\" data-end=\"365\"><strong data-start=\"244\" data-end=\"252\">2026<\/strong>: adaptation and operational testing phase, aimed at adapting the invoicing and accounting systems.<\/p><\/li><li data-start=\"366\" data-end=\"466\"><p data-start=\"368\" data-end=\"466\"><strong data-start=\"368\" data-end=\"376\">2027<\/strong>: effective entry into force of the federal VAT<strong data-start=\"421\" data-end=\"428\">(CBS<\/strong>) and <strong data-start=\"436\" data-end=\"463\">Selective Tax (IS)<\/strong>.<\/p><\/li><li data-start=\"467\" data-end=\"583\"><p data-start=\"469\" data-end=\"583\"><strong data-start=\"469\" data-end=\"482\">2029-2032<\/strong>: progressive replacement of state and municipal taxes with subnational VAT<strong data-start=\"572\" data-end=\"579\">(IBS<\/strong>).<\/p><\/li><li data-start=\"584\" data-end=\"702\"><p data-start=\"586\" data-end=\"702\"><strong data-start=\"586\" data-end=\"594\">2033<\/strong>: complete implementation of the new system and definitive disappearance of the indirect taxes replaced.<\/p><\/li><\/ul><h5><strong><span style=\"color: #ffffff;\">_<\/span><br>Implications for companies<\/strong><\/h5><p>The VAT reform will have cross-cutting impacts on the operations and taxation of companies operating in Brazil.<\/p><ul><li><strong>Increased operational requirements in the short term<\/strong>: adaptation of invoicing and accounting systems to manage the coexistence and subsequent substitution of taxes.<\/li><li><strong>Changes in effective taxation<\/strong>: the progressive elimination of cascading taxation and the application of the destination principle may modify costs, margins and price structures.<\/li><li><strong>Review of contracts and commercial models<\/strong>: it will be necessary to review clauses related to indirect taxes and, in some cases, to rethink distribution and logistics schemes.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7525bfde elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7525bfde\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2ec74a50\" data-id=\"2ec74a50\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4c014ba8 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"4c014ba8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1df5e79 elementor-widget elementor-widget-heading\" data-id=\"1df5e79\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h5 class=\"elementor-heading-title elementor-size-default\">Resources<\/h5>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-579e6c81 elementor-widget elementor-widget-text-editor\" data-id=\"579e6c81\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>LEI COMPLEMENTAR N\u00ba 227, DE 13 DE JANEIRO DE 2026<\/p><p><a href=\"https:\/\/in.gov.br\/web\/dou\/-\/lei-complementar-n-227-de-13-de-janeiro-de-2026-681157850\" target=\"_blank\" rel=\"noopener\">https:\/\/in.gov.br\/web\/dou\/-\/lei-complementar-n-227-de-13-de-janeiro-de-2026-681157850<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4a605a17 elementor-widget elementor-widget-spacer\" data-id=\"4a605a17\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6cc6b61b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6cc6b61b\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5338e3e6\" data-id=\"5338e3e6\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1218b042 elementor-widget elementor-widget-heading\" data-id=\"1218b042\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Go deeper with CoLAB's amec data resources<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3e0ac821 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"3e0ac821\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-31f02ab9 e-grid e-con-boxed e-con e-parent\" data-id=\"31f02ab9\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-528825f6 elementor-widget elementor-widget-image\" data-id=\"528825f6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/amec.es\/comunidad\/colab\/\">\n\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"295\" src=\"https:\/\/amec.es\/wp-content\/uploads\/2026\/01\/Banner-Indicadores-adelantados-amec-1024x377.png\" class=\"attachment-large size-large wp-image-45857\" alt=\"\" srcset=\"https:\/\/amec.es\/wp-content\/uploads\/2026\/01\/Banner-Indicadores-adelantados-amec-1024x377.png 1024w, https:\/\/amec.es\/wp-content\/uploads\/2026\/01\/Banner-Indicadores-adelantados-amec-300x110.png 300w, https:\/\/amec.es\/wp-content\/uploads\/2026\/01\/Banner-Indicadores-adelantados-amec-768x283.png 768w, https:\/\/amec.es\/wp-content\/uploads\/2026\/01\/Banner-Indicadores-adelantados-amec.png 1280w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7f5a8bd7 elementor-widget elementor-widget-image\" data-id=\"7f5a8bd7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/amec.es\/comunidad\/colab\/\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"800\" height=\"295\" src=\"https:\/\/amec.es\/wp-content\/uploads\/2026\/01\/Banner-Panel-exportaciones-amec-1024x377.png\" class=\"attachment-large size-large wp-image-46160\" alt=\"\" srcset=\"https:\/\/amec.es\/wp-content\/uploads\/2026\/01\/Banner-Panel-exportaciones-amec-1024x377.png 1024w, https:\/\/amec.es\/wp-content\/uploads\/2026\/01\/Banner-Panel-exportaciones-amec-300x110.png 300w, https:\/\/amec.es\/wp-content\/uploads\/2026\/01\/Banner-Panel-exportaciones-amec-768x283.png 768w, https:\/\/amec.es\/wp-content\/uploads\/2026\/01\/Banner-Panel-exportaciones-amec.png 1280w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t<div class=\"elementor-element elementor-element-15ef87d6 e-flex e-con-boxed e-con e-parent\" data-id=\"15ef87d6\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2a9c872b elementor-widget elementor-widget-spacer\" data-id=\"2a9c872b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-21bf25d1 elementor-section-boxed 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The reform replaces the previous system (based on multiple federal, state and municipal taxes with heterogeneous rules and fiscal accumulation) with a more homogeneous, non-cumulative [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_canvas","meta":{"inline_featured_image":false,"footnotes":""},"categories":[355],"tags":[],"class_list":["post-48988","page","type-page","status-publish","hentry","category-exclusive-alerts-and-trends"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Brazil launches comprehensive VAT reform | amec Positive Industry<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/amec.es\/en\/brazil-launches-comprehensive-vat-reform\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brazil launches comprehensive VAT reform | amec Positive Industry\" \/>\n<meta property=\"og:description\" content=\"Brazil is implementing a structural reform of its indirect taxation system aimed at simplifying the current model, reducing territorial distortions and aligning it with international best practices in consumption taxation. 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