Global Daily Tax News, Brazil Launches Tax Calculator For New VATs, (Jul 28, 2025)

Brazil's Federal Revenue has released a new calculation tool to support taxpayers to determine liability to the nation's incoming federal and state-level value-added taxes.

Brazil has enacted legislation for a new federal VAT – the Contribution on Goods and Services (CBS) – and a state-level VAT, IBS. With the introduction of CBS, the social security contributions PIS and Cofins would be phased out. The local tax IBS and a new "selective tax" together would largely replace the tax on industrialized goods, IPI, as well as the state sales tax ICMS and the municipal services tax ISS.

The beta version of the new calculator, released for public use on July 18, 2025, is intended to support taxpayers to accurately calculate tax liability under the new taxes. The calculator was previously tested by those companies currently participating in the CBS pilot.

The calculator may either be used online or may be downloaded. The tax agency has also released guidance for developers on the integration of the calculator in existing software.