- Brazil proposed a new dual Value Added Tax (VAT) system
- The proposal was submitted to Congress on April 24, 2024
- The bill is yet to be discussed and will be sent to the Senate for revisions
- If passed, the tax reform bill will implement a dual VAT regime
- The regime includes a goods and services tax (IBS) and a proposed goods and services contribution (CBS)
- The tax reform bill will be implemented in phases over seven years, starting in 2026
- Initially, the CBS will be enforced at a rate of 0.9% and the IBS at 0.1%, gradually increasing
- The PIS, COFINS, and IPI will be phased out starting in 2027
- By 2029, the ICMS and ISS rates will be reduced while the CBS and IBS rates will increase.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
