Skip to content
VELTISCO

Veltis Observatory

Brazil's Tax Reform: what changes, year by year, through 2033.

Tax by tax: what is in force, what enters transition and what ceases to exist. A reference table, year by year, built from the summary schedule in LC 214/2025.

Take the free assessmentGo to the table
Current year
2026
Phase: Test
Period
2026 to 2033
4 phases
Scope
Schedule
No tax rates
Updated on
Source: LC 214/2025

Timeline

Four phases in eight years: the whole transition on one line

2026 is a test year. In 2027, CBS takes full effect. From 2029 to 2032, IBS grows while ICMS and ISS shrink. In 2033, IBS takes over completely.

  1. 2026

    Test

    1. 2026

      Current year

      Test year. CBS and IBS appear on the tax invoice at a reduced rate, which can be offset against PIS and Cofins.

  2. 2027 to 2028

    CBS in force

    1. 2027

      CBS takes full effect. PIS and Cofins are abolished and the Selective Tax (IS) begins.

    2. 2028

      CBS fully in force. ICMS and ISS stay as they are today.

  3. 2029 to 2032

    Transition from ICMS and ISS to IBS

    1. 2029

      The transition from ICMS and ISS to IBS begins. The old taxes start to decline year by year.

    2. 2030

      Second year of the transition: lower ICMS and ISS, higher IBS.

    3. 2031

      Third year of the transition: lower ICMS and ISS, higher IBS.

    4. 2032

      Final year of the transition.

  4. 2033

    IBS in full

    1. 2033

      ICMS and ISS abolished. IBS takes over entirely.

Effective-date table

Tax by tax, year by year

Pick a year on the timeline and see the status of each tax in that year, from what is in testing to what has already been abolished.

Legend

  • In testing
  • Begins
  • In force
  • In transition
  • Abolished
  • Same as today
  • No change described
Status of each tax in each year, 2026 to 2033
YearNew taxesOld taxes
CBSIBSSelective TaxPIS and CofinsICMSISS
2026TestCurrent year

In testing

Reduced rate, can be offset against PIS and Cofins

In testing

Reduced rate, can be offset against PIS and Cofins

No change described

Same as today

No change described

No change described

2027CBS

In force

Takes full effect

No change described

Begins

Abolished

No change described

No change described

2028CBS

In force

since 2027

No change described

In force

since 2027

Abolished

since 2027

Same as today

Same as today

2029Transition

In force

since 2027

In transition

The transition begins

In force

since 2027

Abolished

since 2027

In transition

Starts to decline year by year

In transition

Starts to decline year by year

2030Transition

In force

since 2027

In transition

Larger each year

In force

since 2027

Abolished

since 2027

In transition

Smaller each year

In transition

Smaller each year

2031Transition

In force

since 2027

In transition

Larger each year

In force

since 2027

Abolished

since 2027

In transition

Smaller each year

In transition

Smaller each year

2032Transition

In force

since 2027

In transition

In force

since 2027

Abolished

since 2027

In transition

In transition

2033Full IBS

In force

since 2027

In force

Takes over entirely

In force

since 2027

Abolished

since 2027

Abolished

Abolished

Swipe the table sideways to see all taxes.

How to read

Where a year does not mention a tax, the last described status applies, and an abolished tax stays abolished. If nothing was described, the table shows “No change described”.

Update

Updated on

Updated on October 8, 2026.

The taxes

What enters the transition and what ceases to exist

The role of each tax between 2026 and 2033.

  • Introduced

    CBS

    • 2027Takes full effect

    Appears on the invoice in 2026, at a reduced rate, and can be offset against PIS and Cofins. In 2027 it takes full effect.

  • Introduced

    IBS

    • 2033Takes over completely

    The Tax on Goods and Services also appears on the invoice in 2026, at a reduced rate. The transition starts in 2029: IBS gets larger each year while ICMS and ISS get smaller. In 2033 it takes over completely.

  • Introduced

    Selective Tax

    • 2027Starts

    Starts in 2027, the same year CBS takes full effect. This table tracks only the starting year.

  • Ceases to exist

    PIS, Cofins, ICMS and ISS

    • 2027PIS and Cofins abolished
    • 2033ICMS and ISS abolished

    PIS and Cofins are abolished in 2027. ICMS and ISS continue as today until 2028, get smaller year by year from 2029 to 2032, and are abolished in 2033.

Frequently asked questions

Common questions about the Tax Reform

When does the Tax Reform 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, CBS takes full effect, PIS and Cofins are abolished and the Selective Tax begins.

Do ICMS and ISS disappear all at once?

No. They continue as today in 2028. The transition to IBS starts in 2029 and runs until 2032, with ICMS and ISS falling year by year and IBS growing. In 2033 both are abolished and IBS takes over completely.

What does “no change described” mean in the table?

It means the summary schedule describes no change for that tax in that year. In those cases, the last described status applies.

When was the table last updated?

Updated on October 8, 2026. The date of the last review appears at the top of the page and next to the table.

Does the table replace tax planning?

No. It is a reference summary of the schedule, with no tax rates. For decisions on pricing, tax regime and system configuration, the starting point is the free assessment, in which a specialist gets back to you to talk.

Now comes finding out what the calendar requires of your company.

Answer 6 questions about your company's stage and see which Veltis practices make sense. A specialist gets back to you to talk.

Take the free assessmentSee what changes in your accounting and tax routine

Takes less than 2 minutes. No obligation.