Brazilian tax reform
How the transition affects margins, pricing, contracts and systems.
CBS · IBS · IS
Complementary Law 214/2025 sets out the replacement of PIS and Cofins with CBS and of ICMS and ISS with IBS, two VAT-style taxes, creates the Selective Tax and reduces IPI to zero except for incentivised Manaus Free Trade Zone products. 2026 is a test year, and CBS applies in full from 2027. Each stage affects pricing, credits and cash flow.
Who it is for
- Companies with long-term contracts that need rebalancing clauses
- Manufacturers and retailers relying on state ICMS incentives
- Service providers currently paying low municipal ISS rates
What we deliver
- Margin impact study by product or service line
- Review of pricing policy and current contracts
- Credit map under the new non-cumulative model
- ERP, master data and invoicing adjustment plan
How it starts
With a diagnostic meeting. We review the company’s documents and present a proposal with defined scope, timeline and fees.
Frequently asked questions
What changes in 2026?
Invoices show CBS at 0.9% and IBS at 0.1% on a test basis. These amounts can be offset against PIS and Cofins due.
When does ICMS end?
ICMS and ISS are phased down from 2029 to 2032 and abolished in 2033.
Shall we talk about your company?
In person in Macapá and in Alphaville, Greater São Paulo, and remotely anywhere in Brazil.