Brazilian VAT/GST Reform: Taxable Supplies

Brazil’s Constitutional Amendment No. 132/2023 introduced a new dual consumption tax system based on the tax on goods and services (imposto sobre bens e serviços, IBS) and the contribution on goods and services (contribuição sobre bens e serviços, CBS). Although imposed by different levels of government, both taxes share the same substantive rules on taxable events, tax base, non-taxable events, special regimes, and non-cumulation. In this article, the authors examine the notion of taxable supply under the new model, focusing on the statutory treatment of goods and services, onerous and gratuitous transactions, imports and exports, and the main untaxable events, based on Complementary Law No. 214/2025 and its subsequent adjustments.