Brazil’s historic indirect tax reform is here — and it’s reshaping the business landscape.

What’s happening?

With the approval of Complementary Law No. 214/2025, Brazil is launching the most significant overhaul of its tax system in decades. Multiple federal, state, and municipal taxes will be replaced by three main levies:

  • IBS – Tax on Goods and Services
  • CBS – Contribution on Goods and Services
  • IS – Selective Tax on products harmful to health or the environment

Implementation begins in 2026 and will be phased in through 2033.

How does this impact your business?

  • Simplified compliance and reduced costs
  • Increased transparency and legal certainty
  • Alignment with international tax models
  • New compliance, reporting, and technology demands
  • Opportunities for modernization and strategic positioning

Now is the time to assess your operations, systems, and tax strategies. In our recent webinar, RSM Tax experts Nina Baumbach and Felipe Fortes discussed:

  • The key elements of the new tax system
  • What companies should be doing now to prepare
  • How to navigate the transition from 2026 to 2033