Brazilian Tax Reform: what changes?
A new model is being implemented
Brazil’s Consumption Tax Reform creates three main taxes:
CBS
Contribution on Goods and Services
IBS
Tax on Goods and Services
IS
Selective Tax
Throughout the transition, current taxes such as PIS, COFINS, ICMS and ISS will be gradually replaced by the new model.
In addition, IPI also deserves attention: from 2027, its rates will be reduced to zero as a general rule, except for products manufactured in the Manaus Free Trade Zone (ZFM), which will keep the current rates in accordance with the applicable criteria.
Implementation will be gradual, with stages extending until 2033.
For foreign trade, the change deserves special attention because it also affects how import operation data is handled in government systems.
The Reform also reaches international operations
For importers and exporters, some points deserve attention:
Imports
Operations will also have to consider the IBS-Import and CBS-Import rules, in addition to the other applicable taxes.
It will also be necessary to monitor the treatment of IPI, especially in operations involving products manufactured in the Manaus Free Trade Zone (ZFM), since these items are the exception to the general zero-rate rule from 2027.
DUIMP
The declaration is being adapted to receive new information related to the tax treatment under the Reform.
Products
NCM, description, attributes, origin and other registration data become even more important.
Documents
PO, Invoice, Packing List, transport documents and DUIMP information must be increasingly consistent with each other.
Costs
The tax impact analysis should consider not only rates, but also tax bases, credits, benefits, tax regime and other characteristics of the operation.
Logistics and Services
Transportation, warehousing, customs clearance, consulting and other services may also be affected by the new model.
The Reform requires more than a tax review
The transition involves different areas of the company.
That is why it is important to assess:
- Products: NCM, description, attributes and tax treatments.
- Processes: Purchasing, importing, receipt of documents and cost build-up.
- Systems: ERP, tax systems, foreign trade systems and integrations.
- Documents and data: Consistency between PO, Invoice, Packing List, transport documents and DUIMP.
- Costs: Possible impacts on cost, price, margin, cash flow and tax credits.
The sooner the impacts are identified, the greater the ability to adapt during the transition.
Attention: DUIMP
The Tax Reform brings new information and tax treatments to import operations.
That is why 2026 is an important time to review registrations, processes, systems and information used in foreign trade operations.
The sooner your company is prepared, the lower the risk of rework, inconsistencies and operational impacts during the transition.
Foreign trade ready for a new scenario
Tradeworks monitors the impacts of the Tax Reform on foreign trade activities, including:
- Foreign Trade Consulting
- Tax Classification
- Customs Clearance
- DUIMP
- International Logistics
- Document Analysis
- Import and Export Processes
Our goal is to follow the evolution of rules and systems to support our clients throughout this transition period.