The transition to IBS and CBS, year by year.
Tax reform is changing how consumption is taxed in Brazil. We bring the experience of those who took part in the debate that produced the new rules, and we follow every stage of the transition.
Speak directly with a partnerWhat changes
CBS and IBS start to appear on tax invoices, at test rates (CBS 0.9% and IBS 0.1%).
What to do now
Map the impact on prices, contracts and margins and organize how the transition will be governed.
How we help
Impact assessment and an advisory committee for the implementation, alongside management.
What changes
CBS applies in full; PIS and Cofins are abolished, IPI is reduced to zero (except in the Manaus Free Trade Zone) and the Selective Tax begins. IBS stays at 0.1% in both years.
What to do now
Review pricing and long-term contracts; organize the use of credits and prepare for the ICMS and ISS transition, which begins in 2029.
How we help
Review of contracts and recovery of remaining credits.
What changes
ICMS and ISS fall by 10 percentage points a year (to 90%, 80%, 70% and 60%) while IBS rises in the same proportion.
What to do now
Monitor accumulated ICMS credits and the phase-out of state tax incentives.
How we help
Credit management, defense against transition-related assessments and stage-by-stage planning.
What changes
ICMS and ISS are abolished; IBS and CBS apply in full.
What to do now
Review the group’s tax structure and contracts under the new model.
How we help
Preventive advice and litigation under the new system.
Frequently asked questions
Yes. Mostly indirectly: IBS and CBS are levied on consumption and are reflected in the price of goods and services, with part of the tax refunded (cashback) to low-income families. There are also direct effects: individuals who rent out or sell real estate above the thresholds of Complementary Law 214/2025 may become taxpayers, and Constitutional Amendment 132/2023 made inheritance and gift tax (ITCMD) rates progressive, which matters for succession planning.
They are not lost. ICMS credit balances existing at the end of 2032, once validated by the relevant state, may be offset against IBS in monthly instalments over up to 20 years, with inflation adjustment, or transferred to third parties, under Complementary Law 214/2025.
The tax reform is a revolution that may upset the balance of contracts. Reviewing contracts can bring predictability and efficiency, providing certainty and new business opportunities.
How we help
- Assessment of the impact on prices and contracts
- Advisory committee for implementing the reform
- Preventive advice to reduce risks
- Use of credits under the new regime
- Monitoring of the regulations
Related reading
- BooksCurso de IBS e CBS
- Conjur · Jul 30, 2026IBS, CBS and the export of services
- Conjur · Jul 16, 2026On the concept of services in Brazil’s consumption tax reform
- Conjur · Jun 4, 2026There is no personal use or consumption in a taxpayer’s business activity