IBS and CBS Taxable Amounts: Rates and Taxable Basis

New
Journal
Author
Brazuna, J.L. Ribeiro
Country
Brazil
Published Date
Issue
International VAT Monitor 2026 (Volume 37), No. 4
FormatPDF
EUR
45
| USD
50 (VAT excl.)

This article examines the rules for quantifying IBS (imposto sobre bens e serviços) and CBS (contribuição sobre bens e serviços), the taxes introduced by Brazil’s consumption tax reform to gradually replace a significant part of the current indirect taxation system. The analysis focuses on the taxable basis of the new taxes, their reference rates, standard rates and nationally uniform rates, as well as the differentiated, specific and special regimes set forth in Complementary Law No. 214/2025. Although the reform was originally based on the ideals of simplification, neutrality and uniformity in consumption taxation, its implementing legislation sought to preserve certain preferential treatments through rate reduction rules, deemed tax credits, sector-specific calculation rules and special regimes applicable to certain transactions, taxpayers and geographically incentivized areas.