As of January 1, 2027, the Contribution on Goods and Services (CBS) will come into effect, replacing thePIS, theCofinsand the Tax on Industrialized Products (IPIThe federal contribution was established with the tax reform.It has been in a testing phase..
The reform set a maximum rate for the sum of the CBS (Consumer Tax on Goods and Services) and IBS (Tax on Goods and Services). The latter will be collected by states and municipalities in replacement of the Tax on the Circulation of Goods and Services (ICMS).ICMSAnd to the Service Tax (IS)Text: International Space Station (ISS)).
The maximum rate will be 26.5%. The Senate is expected to set the CBS percentage for 2027.
Proposal for Calculation
The Federal Revenue delivered to the Union Court of Accounts (TCU) in September a proposal for the calculation of the CBS tax rate. The court has until the end of this month to approve the proposal and send it to the Senate. And the Senate has until December 15th to issue a resolution with the official rate.
Cashback and consumption taxation
With the CBS, families registered in the Single Register for Social Programs of the Federal Government (CadÚnico) will be entitled to a refund (cashbackA portion of the tax paid on essential products and services.
In 2027, the IBS will also enter the testing phase.
Both taxes will be levied on the final product. Thus, consumption taxation will occur only at the destination of the goods, not at their origin.
In industrial products, this will be guaranteed by a mechanism calledSplit paymentThe credit, which will immediately grant the buyer credit equivalent to the tax paid to the supplier.
Competitiveness
Congressman Reginaldo Lopes (PT-MG) states that with this new debit and credit system, the production stages have been de-taxed, allowing Brazilian industry to become competitive once again.
"It will allow Brazil, in the medium term, to stop being a primary export economy, which instead of making ketchup, exports tomatoes; instead of producing coffee capsules, exports raw coffee; and instead of manufacturing steel, industrializes rare earths, does micro-mining, nano-mining, and nitrogenous fertilizers for agriculture, ending up exporting ore." He exemplified.
Lopes believes the simplicity of the system can reduce tax evasion, fraud, and non-compliance. He argues that when more taxpayers pay the taxes they owe, the tax burden can be distributed more widely.
"This will therefore allow the tax burden to be reduced even further, which we call the standard rate and is currently limited to 26.5%. I hope to reach the 22% mark after the fifth year of tax reform," he said.
Tax Rate Definition
According to tax lawyer Erich Endrillo, the maintenance of the tax burden will depend on the definition of the rates of the new taxes. He states that the service sector may face an increase in the tax burden.
"If the guidelines are followed, I believe Brazil will enter a very good growth cycle. But this will depend on how the rates are set and the overall treatment given to this system in the long term," he emphasized.
Selective Tax
In the coming days, the government is expected to send a bill to the National Congress regarding the rates of the new Selective Tax (ST). This tax will be applied to products harmful to health or the environment, such as alcoholic beverages. In this case, the Selective Tax will also serve to replace part of what is collected through the IPI.