Tax Reform in Brazil: How to prepare for Dual VAT (CBS and IBS)

Brazil's Tax Reform: From Tax Changes to Operational Adaptation Under the Dual VAT System (CBS and IBS)

Brazil's Tax Reform goes beyond replacing existing taxs. The introduction of a dual VAT system, consisting of the federal CBS and the IBS administered by states and municipalities, requires companies to review how they calculate, report, and document their transactions in one of the world's mos complex tax systems.

The reform will gradually affect taxes such as PIS, Cofins, IPI, ICMS, and ISS, but its impact will begin well before the new system is fully implemented in 2033. The new rules are already being incorporated into electronic tax documents, introducing specific fields, validations and structures for CBS and IBS. As a result, adapting to the reform is not just a matter for tax departments. It also involves ERP systems, master data, tax codes, accounting workflows, and document issuance and receipt processes.

In this context, Brazil's Tax Reform presents a particularly challenging transition for companies handling NF-e, NFC-e, NFS-e, CT-e, NFCom, or other documents subject to electronic validation. Electronic invoicing in Brazil already plays a central role in tax compliance, and the new system further reinforces the need to automate processes, reduce manual tasks, and keep systems aligned with regulatory updates.

This video will help you understand why the dual VAT system is not just a tax reform, but also an operational and technological challenge. If your company operates in Brazil or manages tax compliance across multiple markets, this video can help you identify which areas to prepare before the new requirements become fully effective.

Find out more in our full webinar on Tax Reform in Brazil