Brazil is moving ahead with one of the most significant changes to its consumption tax system in recent decades. Through new constitutional and legislative measures, the country has begun replacing a fragmented structure of indirect taxes with a unified VAT-based model and a selective tax, marking a decisive shift in how goods and services are taxed.
In this overview ETL GLOBAL Member Numeric Brasil explains the key elements of the reform, including the introduction of CBS and IBS, the role of the selective tax, and the timeline leading to full implementation in 2033. It also outlines the practical effects the transition may have on compliance, reporting and business operations in Brazil.
For international companies, the reform represents a structural change that will influence market entry decisions and long-term tax positions. A clear understanding of how the new system is being introduced is essential as Brazil progresses towards a more standardised consumption tax framework.
