Brazil introduced a new federal CBS tax on digital services effective 1 January 2026, replacing PIS and Cofins. The consolidated rate of 26.5% (CBS 8.8% + IBS 17.7%) applies to non‑resident providers and marketplaces, which must register and comply with Nota Fiscal e‑invoicing. B2B customers can self‑account, while B2C transactions are subject to collection by the provider.
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Global VAT Compliance · 1 day ago
Brazil has enacted Decree No. 12,955, establishing a federal Contribution on Goods and Services (CBS) for digital services. The decree imposes destination‑based taxation on non‑resident suppliers, requiring registration and tax collection on B2C sales, while B2B transactions are subject to reverse charge. Platforms that facilitate services become deemed suppliers, responsible for collecting and remitting CBS.
International Tax Review · about 1 month ago
The article explains how Brazil’s new nationwide consumption tax, the IBS, replaces state and municipal taxes, marking a significant shift in governance and operational logic. It highlights the implications for municipalities and the broader tax system, underscoring the paradigm shift in Brazil’s indirect tax regime.
Fiscal Solutions · 2 months ago
Brazil's new IBS/CBS/IS tax system now treats advance payments as taxable events, requiring businesses to issue a Debit Invoice (NF-e type 06) and report tax in the payment period. The final invoice must reference the advance payments via <gPagAntecipado> to offset tax already paid and avoid double taxation. ERP systems must support advance-payment tracking and the new invoicing requirements.
LinkedIn · 3 months ago
Brazil’s new Technical Notes mandate that invoices and payments be linked under the split payment framework, requiring integration between electronic tax documents (DF‑e) and payment data. The system will be tested from 6 April 2026 and go live on 4 May 2026, with XML and invoicing processes needing updates to include transaction data for automatic withholding of IBS and CBS.
VatCalc · 3 months ago
Brazil will roll out an intelligent split payment system for VAT starting 1 January 2026 to curb fraud. Pilot testing begins on 6 April 2026, with the production version following on 4 April. The mechanism requires payment service providers to verify supplier VAT credits before transferring funds, and buyers can only claim credits after the supplier has paid the tax.
LinkedIn · 3 months ago
Brazil’s new dividend withholding tax (WHT) has been in force for nearly a month, but questions remain about its application. The December 16, 2025 Q&A confirms that dividends paid to foreign governments, sovereign funds and social‑security‑benefit managers are exempt, and that the exemption also covers entities wholly owned by exempt investors. However, in structures where a Brazilian entity is held by a foreign holding company only partially owned by exempt investors, the exemption may not apply, potentially subjecting dividends to full WHT.
The CBS tax was gazetted on 30 April 2026 and applies from 1 January 2026.
The consolidated rate is 26.5%, comprising 8.8% CBS and 17.7% IBS.
Platforms that set terms and conditions, handle payments, or manage delivery are liable; platforms that only list services or process payments are exempt.
Non-resident providers must register for CBS and IBS and comply with Brazilian Nota Fiscal e-invoicing obligations.
B2B customers can self-account for CBS, while B2C transactions require the provider to collect the tax.
This summary was published on VATfaqs.com on 4 May 2026. It relates to VAT developments in Brazil. The original source is VatCalc.
