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Brazil implements consumption tax reform with new dual VAT system
Brazil is undergoing a major consumption tax reform that will replace several existing taxes with a dual Value Added Tax (VAT) system. The new structure introduces the Contribution on Goods and Services (CBS), a federal tax, and the Goods and Services Tax (IBS), which will be shared between states and municipalities. This reform will eventually extinguish PIS and Cofins, while gradually replacing ICMS and ISS between 2029 and 2032.
A key structural change is the shift from an origin-based taxation principle to a destination-based principle, meaning taxes will be collected where the final consumer is located. Additionally, IPI rates will be reduced to zero for most items, with exceptions for the Manaus Free Trade Zone. The transition period requires companies to manage dual tax regimes, update software, and adjust internal processes to ensure compliance.
To support this transition, the National Tax Compliance Program (PNCT) has been established to provide assisted adaptation for taxpayers in 2026, prioritizing monitoring and error correction over immediate punishment. Furthermore, Atricon has partnered with the IDP to strengthen external audit and governance capabilities to monitor the effectiveness of these new regulations.
Entities
Adriana Matos · Atricon · Brazil · Brazilian federal government · CBS · Comitê Gestor do IBS · IBS · IDP · Person Consultoria · Receita Federal
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Atricon signed a cooperation agreement with IDP to strengthen external audit and control during the tax reform transition. www.metropoles.com
- [● 3 SOURCES] The gradual replacement of ICMS and ISS by IBS will occur between 2029 and 2032. portal.comunique-se.com.br · dicaappdodia.com · jornalempresasenegocios.com.br
- [● 4 SOURCES] The PIS and Cofins taxes will be definitively extinguished. portal.comunique-se.com.br · dicaappdodia.com · www.metropoles.com · www.contabeis.com.br
- [● 4 SOURCES] IPI rates will be reduced to zero for most items, except for those in the Manaus Free Trade Zone. portal.comunique-se.com.br · dicaappdodia.com · www.metropoles.com · www.contabeis.com.br
- [○ 1 SOURCE] The tax principle will shift from origin to destination, where taxes are collected where the final consumer is located. portaldaautopeca.com.br
- [● 2 SOURCES] The transition requires companies to update software parameters and monitor billing flows due to dual tax regimes. portal.comunique-se.com.br · dicaappdodia.com
- [○ 1 SOURCE] 88% of tax documents issued by mandatory taxpayers already included IBS and CBS information.
- [● 9 SOURCES] The tax reform establishes the Contribution on Goods and Services (CBS), the Goods and Services Tax (IBS), and the Selective Tax (IS). portal.comunique-se.com.br · dicaappdodia.com · www.metropoles.com · bastidoresdopoder.com.br · www.contabeis.com.br · +3 more