What is CBS and IBS?
The CBS (federal) and the IBS (state and municipal) are the new consumption taxes created by Constitutional Amendment 132/2023 and Lei Complementar 214/2025. They replace PIS, COFINS, ICMS and ISS over 2027 to 2033.
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Current Rate (Test year 2026. CBS in force from 2027; IBS phased in from 2029 to 2032 and at its full rate from 2033.)
2026 test year: CBS 0.9% and IBS 0.1%, offset against PIS and COFINS. Final rates are not yet set.
Example
In 2026 a company in the regular regime shows CBS and IBS on its NF-e. If it issues its documents correctly, it is excused from paying them.
How CBS and IBS works in Brazil
The IBS is run by the Comitê Gestor do IBS (CGIBS). Simples Nacional companies are outside the 2026 test and may choose, from 2027, to pay CBS and IBS outside the DAS. The window for the first half of 2027 closes on 30 October 2026.
Related terms
PIS/Pasep and COFINS are federal contributions on revenue. They are paid monthly by companies outside the Simples Nacional and are replaced by the CBS from 2027.
ICMS is the state tax on the circulation of goods and on interstate transport and communication services. Each state sets its own internal rates, dates and rules.
ISS is the municipal tax on services. Each municipality sets its rate within the national range and its own rules for invoices and payment.
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