Global Daily Tax News, Brazil Adds New VAT Rules To Simples Nacional Regulations, (Aug 13, 2026)

Brazil's Simples Nacional Management Committee (CGSN) has approved changes to the regulations governing the Simples Nacional regime in light of the nation's new value-added taxes, CBS and IBS.

Among the main changes is the incorporation of the Contribution on Goods and Services (CBS) and the Tax on Goods and Services (IBS) into the tax base of the Simples Nacional regime, with these two taxes due to replace PIS and Cofins from next year.

Optionally, the rules provide for the option for taxpayers to account for and pay CBS and IBS outside the Simples Nacional regime, through an election to apply the regular regime that may be made next month.

Taxpayers wishing to join the Simples Nacional regime from January 2027 must also submit a request between September 1, 2026, and September 30, 2026.

By November 30, 2026, taxpayers may rescind either election.

The updated regulations provide that taxpayers may also make an election between March 1 and March 31, 2026, to apply the regular CBS and IBS regime for the second half of 2027. This election will then be effective from July 1 to December 31, 2027. Ahead of the second half of 2027, taxpayers may rescind such an election by May 31, 2027.

The updated regulations also provide for rules regarding enforcement of the IBS and CBS levies, regarding audits, and regarding administrative tax litigation.