Brazil tax reform threatens credit on 66% of invoices

A study by technology firm V360 examined more than 6.4 million electronic invoices (NF‑e) processed on its platform. It found that 66.2 % of the invoices contain errors that could prevent companies from claiming tax credits under Brazil’s upcoming tax reform. Specifically, 64.4 % of the documents lacked the required information for the new Imposto sobre Bens e Serviços (IBS) and Contribuição sobre Bens e Serviços (CBS) fields, and 1.8 % showed calculation mismatches between supplier data and validation references. Only 35.8 % of the 139 000 suppliers surveyed correctly completed the new fields, leaving the majority unprepared. The reform, slated for testing in 2026 and full implementation in 2027, will replace existing consumption taxes with IBS and CBS, allowing firms to offset taxes paid on inputs. Companies must therefore adapt their fiscal, financial and procurement processes and adopt automation tools to validate large volumes of invoices, or risk cash‑flow losses and non‑compliance. A validation rule for IBS/CBS has already entered the testing environment of the Rio Grande do Sul virtual tax system, with mandatory compliance expected by 3 August 2026.