Brazil’s New Sales Taxes Are Now in Every Invoice
Tax: Brazil Key Facts —What happened. Brazil’s new consumption taxes went live in every goods invoice on 3 August 2026. —What is changing. Two new taxes replace five old ones, and one rulebook replaces 27 state regimes. —The catch: The 2026 rates are real charges, not a test — but they are credited back or […] The post Brazil’s New Sales Taxes Are Now in Every Invoice appeared first on The Rio…
On August 3, 2026, Brazil implemented its new dual VAT system, requiring every electronic invoice to include CBS and IBS fields. This change replaces five old taxes with two new ones, CBS and IBS. The rates for 2026 are 0.9% CBS and 0.1% IBS, designed to be neutral by crediting paid amounts back to old taxes or waiving them for compliant taxpayers.
Small firms and those under the Simples Nacional regime will be exempt from 2026 rates. The reform consolidates existing taxes and introduces a destination-based system with new taxes targeting harmful products. Foreign businesses selling to Brazil must comply with the new system, which includes mandatory e-invoicing for digital platforms and intangible goods.
The implementation will extend to more tax types in December 2026, with penalties for non-compliance starting in the new year.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
