Brazil's tax reform: key points for foreign trade companies

Brazil's consumption tax reform gradually replaces PIS, Cofins, IPI, ICMS and ISS with the CBS, a federal tax, and the IBS, levied by states and municipalities. In 2026, companies already show the new taxes on invoices at symbolic test rates of 0.9% for the CBS and 0.1% for the IBS.

Transition timeline

• 2026: test year, with CBS and IBS shown on invoices for information.
• 2027: PIS and Cofins are abolished, including on imports, and the CBS starts being collected. The Selective Tax comes into force.
• 2029 to 2032: ICMS and ISS are gradually reduced as the IBS increases.
• 2033: the system runs fully on CBS and IBS.

What changes for foreign trade

Exports remain tax-exempt with credits preserved, a principle maintained by the reform. On imports, the CBS and IBS replace the abolished taxes, and collection gradually shifts from origin to destination, which affects logistics planning and the choice of structure.

Points to watch

• Update invoicing systems and ERP to the new fields.
• Review long-term contracts with tax or pricing clauses.
• Map accumulated credits and cash flow during the transition.
• Reassess corporate structure and the location of operations in light of destination-based taxation.

This content is for information only. Each case should be analysed by licensed professionals, whom Aptiva Nexus coordinates as part of structuring the operation.