Brazil VAT / Sales Tax
Detailed vat / sales tax rates and rules for Brazil in 2026.
Brazil's major indirect tax reform (Constitutional Amendment 132/2023) entered its transition phase in January 2026. The pilot rates are CBS (federal) at 0.9% and IBS (state/municipal) at 0.1% for 2026. In 2027, CBS will fully replace PIS and COFINS while IBS remains at 0.1%. From 2029-2032, IBS will gradually increase as ICMS and ISS decrease proportionally. By 2033, the full transition completes with ICMS and ISS abolished. The combined standard rate is expected around 26.5% (CBS 8.8% + IBS 17.7%). Basic food items will be zero-rated, and sectors like health, education, and public transport will receive a 60% rate reduction.
Standard Rate
20%
Registration Threshold
Most businesses must register for applicable indirect taxes. Simples Nacional provides simplified compliance for small businesses with revenue up to BRL 4.8 million
Reduced Rates
How Brazil VAT / Sales Tax compares
Brazil’s standard VAT / sales tax rate of 20% is the 27th highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and South America’s regional average of 16.4%.
