Complementary Law No. 227/2026, published on 13 January 2026, formally establishes the Management Committee of the Goods and Services Tax (CGIBS) and sets out governance, litigation, and revenue distribution rules for Brazil’s new IBS tax. The law does not impose immediate obligations on taxpayers but signals a shift to a centralized, standardized administration that will affect audits, enforcement, and data cross‑checking in the future.
It was published on 13 January 2026.
CGIBS is responsible for the administration, collection, auditing, and distribution of IBS, replacing fragmented ICMS and ISS models.
No, it does not impose immediate new obligations but signals future audits and enforcement under a centralized model.
It sets criteria for revenue distribution among states, municipalities, and the Federal District.
It provides specific rules for dispute resolution for IBS.
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Sovos · 1 day ago
The Brazilian Federal Government will reduce tax incentives for several federal taxes starting in 2026. Corporate Income Tax and Import Tax incentives will be cut from 1 January 2026, while other taxes such as PIS/Pasep, Cofins, CSLL, IPI, and employer social security contributions will see reductions from 1 April 2026. The changes affect a broad range of tax regimes and are subject to complementary legislation.
VatCalc · 7 days ago
Brazil has approved a second law that operationalises its dual VAT system, introducing a federal CBS tax of 8.8% and a state/municipal IBS tax of 17.7% and replacing PIS, Cofins, ICMS and ISS. The legislation establishes a national governance body for IBS, provides sector‑specific rules, and sets a phased transition from 2026 to 2033.
VatCalc · 10 days ago
Brazil is launching a seven‑year transition to a dual VAT system, replacing PIS, Cofins, ICMS and ISS with federal CBS and state IBS. The pilot starts in 2026 with minimal rates and e‑invoicing waivers, while full implementation is slated for 2033 with a consolidated rate of roughly 28%. The reform includes compensation funds for states and a shift to a destination‑based regime.
Caribbean National Weekly · 1 day ago
The Bahamas Prime Minister announced that VAT on unprepared food will be removed, effective 1 April 2026, bringing the rate to 0%. The announcement also includes a reduction of the overall VAT rate from 12% to 10%, aiming to ease the cost of living for Bahamian households.
Sales Tax Institute · 2 days ago
Washington State Department of Revenue has issued updated guidance for businesses seeking a direct pay permit for sales and use tax. The guidance outlines eligibility thresholds ($240,000 cumulative liability or $10M taxable purchases), application process, reporting obligations, and limitations on permit use and transfer. Businesses must comply with these rules to claim a five‑year deduction on retail sales tax.
Sales Tax Institute · 2 days ago
Missouri's Department of Revenue clarified that contractors who purchase materials for real property improvements are considered the final user, making those sales taxable. Contractors cannot charge sales tax on the lump sum contract price but may pass the cost of sales tax for materials to the homeowner. The ruling, Letter Ruling No. LR 8374, was issued on November 24, 2025.
