Brazil's Tax Reform Extends to Rural Producers and State Tax Base

Brazil's tax reform introduces two new consumption taxes, the Imposto sobre Bens e Serviços (IBS) and the Contribuição sobre Bens e Serviços (CBS), which will gradually replace ICMS, ISS, PIS and Cofins. In the state of Paraná, legislators have filed PL 523/2026 to exclude the IBS, CBS and a selective tax from the ICMS calculation during the reform's transition, a move supported by the G7 Paraná alliance and the state bar association to avoid double taxation and improve legal certainty for businesses.

At the federal level, a complementary law (No. 214/2025) requires rural producers who are individuals and who fall under the IBS or CBS regime to register with the National Register of Legal Entities (CNPJ). Although the registration does not change the producer’s status as a natural person, it is mandatory for proper tax compliance, access to credits and participation in commercial operations. Failure to obtain a CNPJ could lead to operational disruptions, loss of tax credits and difficulty in regularizing fiscal obligations.

Legal experts advise producers to seek specialized guidance promptly to align their fiscal documentation and planning with the new requirements, while state officials aim to streamline the transition for businesses operating in Paraná.