- Brazil enacts regulations for new value-added taxes
- President signs law governing federal and state-level VAT
- Federal VAT CBS and state-level VAT IBS established
- New VAT regime to replace social security contributions PIS and Cofins
- IBS and selective tax to replace IPI, ICMS, and ISS
- IBS and CBS to be introduced in 2026, replacing PIS/Cofins in 2027
- ICMS and ISS to be phased out starting in 2029
- Combined effective rate expected to be around 28%
- Zero percent VAT rate for essential foods
- Tax rates reduced for certain professional services and products
- Proposal for tax refund to low-income consumers through cashback scheme
- Regulations to govern administration, collection, and enforcement of levies
- Split payment mechanism to be used for VAT payments
- Concessionary arrangements for real estate sector and tax refund scheme for tourists’ purchases.
Source: answerconnect.cch.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.
