# What changes with the CBS and IBS in 2026 and 2027?

Last updated: 25 October 2026
Country: Brazil
Category: tax

**Quick answer:** 2026 is a test year: CBS at 0.9% and IBS at 0.1% appear on invoices and are offset against PIS and COFINS. From 2027 the CBS replaces PIS and COFINS. ICMS and ISS are phased out from 2029 and end in 2033.

## Detailed explanation

## 2026: the test year

Constitutional Amendment 132/2023 and Lei Complementar 214/2025 created the CBS (federal) and the IBS (state and municipal). In 2026 the CBS runs at 0.9% and the IBS at 0.1%, shown on fiscal documents and offset against PIS and COFINS. A company that issues its documents correctly is excused from paying them. Simples Nacional companies are outside the 2026 test.

## The timetable

- 2027: the CBS comes into force; PIS and COFINS end.
- 2029 to 2032: ICMS and ISS are reduced step by step while the IBS rises.
- 2033: ICMS and ISS end.

## For Simples companies

From 2027 a Simples company may choose to pay CBS and IBS outside the DAS. The window for the first half of 2027 closes on 30 October 2026; later choices are made in March and September.

## What Finn does

Finn explains the timetable with sources and treats every rate after 2026 as not yet final.

Source: https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/programas-e-atividades/reforma-consumo/entenda

## Common mistakes to avoid

- Thinking 2026 brings a new tax to pay on top of PIS and COFINS
- Ignoring the invoice fields, which is what keeps the company excused

## Frequently asked questions

### Do I pay CBS in 2026?

Not if your fiscal documents are issued correctly; the amount is offset against PIS and COFINS.

### When do ICMS and ISS end?

In 2033.

## Practical tips

- Check that your invoicing provider fills in the CBS and IBS fields

## Related questions

- [How does the Simples Nacional work, and when is the DAS due?](https://accounts-os.com/br/questions/how-does-the-simples-nacional-work)