Brazil's Tax Reform has already begun: prepare your company for each phase.
The transition runs from 2026 to 2033 and changes pricing, credits and tax calculation in stages.
Other areas of this practiceBase
What we do
What is included in Tax Reform
Year-by-year impact estimate (2026-2033)
Effect of the CBS (Contribution on Goods and Services) and the IBS (Tax on Goods and Services) on the tax burden, by sector, regime and state.
Readiness assessment
Configured management system (ERP), product (NCM) and service (NBS) master data with tax classification (cClassTrib), and contracts with a rebalancing clause.
Price and margin review
How much to reprice to maintain margin when the tax credit changes.
Regime review during the transition
Analysis of when it pays off to pay CBS and IBS outside the DAS (the Simples payment slip), looking at who buys from your company.
Ongoing monitoring
We track the regulations, which are still being published year by year.
How it works
How the work happens
- 01
Initial estimate
Sector, regime, revenue and state as the starting point to measure the effect of the transition.
- 02
Readiness assessment
Checklist covering systems, contracts and master data.
- 03
Transition plan
What to adjust in each year of the timeline, in priority order.
- 04
Guided execution
Configuration, contract review and price review.
- 05
Ongoing updates
Plan review with every change in the regulations.
Who it is for
Who this area is right for
Getting started
Understanding the impact on the final price and the option to pay CBS and IBS outside the DAS starting in 2027.
Growing
Configuring the ERP, reviewing long-term contracts and estimating the effect on margin by product line.
Large companies
Modeling the impact across several states and CNPJs, the effect of split payment on cash flow and the review of suppliers.
In the ecosystem
What connects to this area
Tax planning
The Reform redesigns tax planning entirely: regime, credit and price change together.
Technology
Configuring the ERP for CBS and IBS in advance reduces the risk of rework and rejected invoices.
Controllership
Repricing to maintain margin during the transition is a management decision, and controllership brings the numbers by product and by customer.
Frequently asked questions
Questions from anyone evaluating
When does the Tax Reform actually take effect?
2026 is a test year: CBS and IBS appear on the invoice at a reduced rate, which can be offset against PIS and Cofins. In 2027 the CBS takes full effect, PIS and Cofins are eliminated and the Selective Tax begins. The IBS takes over entirely in 2033.
Do PIS, Cofins, ICMS and ISS all disappear at once?
No. PIS and Cofins are eliminated in 2027. ICMS and ISS continue as they are today in 2028, decline year by year starting in 2029, in the transition to the IBS, and are eliminated in 2033.
Is my Simples Nacional company affected?
Yes. Starting in 2027, a Simples company can choose to pay CBS and IBS outside the DAS, in order to generate credit for customers who buy under the regular regime. If it stays in the DAS, that credit is not generated. It is worth evaluating whether this pays off for your customer profile.
Do I need to wait for the final regulations to prepare?
No. Reviewing the product registry (NCM/NBS), contracts and system configuration does not depend on the points still being regulated. What is still changing is tracked and the plan is reviewed with each update.
Do I need to change my ERP because of the Reform?
The system will probably need configuration adjustments: CBS and IBS fields, tax classification (cClassTrib) and the NCM/NBS registry. The readiness assessment points out what to review and what to request from the system vendor.
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