Brazil's CBS Tax Reform Triggers Corporate Credit Review and Higher Import Costs

Companies across Brazil are intensifying reviews of accumulated PIS/Cofins credits as the Contribuição sobre Bens e Serviços (CBS) is set to replace the current consumption tax regime in 2027. According to Roberto de Lázari, director of All Tax, many firms still hold significant unused credits and must document the origin and legitimacy of these amounts to ensure they can be utilized under the new system, prompting wider adoption of tax‑audit projects, data‑integration tools and automation.

The reform also ends the temporary exemption on overseas purchases known as the “blusinhas” tax. Imported goods will be subject to the CBS—estimated at about 9.43%—in addition to the state ICMS levy of roughly 17%, which could bring final consumer prices back to or above pre‑exemption levels. Experts such as Luiz Carlos Junqueira and Izabela Jamar note that the change aims to align the tax burden of domestic and foreign products, though price volatility may continue throughout the phased transition that runs until 2033.