Brazil tax reform sets 2027 deadline for new IBS and CBS taxes

Brazil’s tax reform, approved in 2024, replaces PIS/Cofins, ICMS and ISS with a federal Contribuição sobre Bens e Serviços (CBS) and a shared Imposto sobre Bens e Serviços (IBS). Collection of the new taxes begins on 1 January 2027. From 3 August 2026 electronic invoices that omit the CBS/IBS fields will be automatically rejected, and businesses must decide by September 2026 whether micro‑ and small‑company taxpayers in the Simples Nacional regime will collect IBS and CBS inside the unified guide or through the regular regime.

The reform also creates a “technical CNPJ” for individuals who must issue fiscal documents under the new system; the requirement for landlords of several properties (or with annual revenue above R$ 240 000) starts on 1 January 2027, but it does not turn them into companies. The Federal Revenue and the IBS/CBS Management Committee postponed the deadline for physical persons and rural producers to obtain the technical CNPJ until January 2027.

Professional bodies have issued guidance: the Federal Accounting Council released technical guidance on accounting for IBS and CBS, and the ACIBr and regional SEBRAE chapters are holding free seminars for small‑business owners. Companies are urged to adapt ERP systems, integrate split‑payment mechanisms and prepare for dual‑regime operation until the transition ends in 2033.