IBS and CBS: your company issuing correctly from day one
The Tax Reform replaces five taxes with a dual VAT and changes how tax is calculated and shown on every invoice. Understand what's changing, see the timeline and find out if your company is ready.
What changes for small and medium businesses
PIS, Cofins, IPI, ICMS and ISS give way to two consumption taxes, CBS and IBS, plus the Selective Tax.
CBS, the federal contribution
The Contribution on Goods and Services replaces PIS and Cofins, with a single rate for most transactions.
IBS, the state and municipal tax
The Tax on Goods and Services replaces ICMS and ISS, with the same rules nationwide and taxation at destination.
Selective Tax
Applies to products harmful to health or the environment, such as alcoholic beverages, cigarettes and certain fuels.
Broad tax credit
Tax paid on purchases becomes a credit to offset against sales. That's why the supplier's invoice needs to be correct.
The transition deadlines
The change happens gradually, between 2026 and 2033. Both systems run side by side during the transition.
- 2026
Test year
Invoices start showing CBS (0.9%) and IBS (0.1%) as separate line items, on a trial basis. The amount is offset against PIS and Cofins owed.
- 2027
CBS takes effect
CBS starts being charged and PIS and Cofins cease to exist. The Selective Tax begins, and IPI is zeroed out for most products. Simples Nacional companies can choose to calculate IBS and CBS outside the DAS.
- 2029 to 2032
ICMS and ISS transition
ICMS and ISS rates are gradually reduced (10%, 20%, 30% and 40%), while IBS increases proportionally.
- 2033
Full model
ICMS and ISS are eliminated. IBS and CBS take full effect.
Based on Constitutional Amendment 132/2023 and Complementary Law 214/2025. The rules are still being regulated: confirm your company's tax framework with your accountant.
Is your company ready?
Six quick questions to find out where your company stands. The result appears instantly.
Does your management system already issue invoices with IBS and CBS fields?
How Graffenno already supports the reform
The systems keep pace with every stage of the transition, so your company doesn't have to switch tools halfway through.
Invoices with IBS and CBS
NF-e, NFC-e and NFS-e follow the new layouts, with IBS and CBS fields shown on every document.
Tax records ready
Products and services receive the reform's tax classification, and the calculation follows the records.
Updates included
Legislation changes reach the system at no extra cost, on every plan.
Accountant kept in the loop
The free accountant panel gives access to the documents to review the transition's calculations.
Questions about the Tax Reform
Simples Nacional continues to exist. Starting in 2027, Simples companies will be able to choose to calculate IBS and CBS outside the DAS, which can generate tax credit for their customers. Discuss this choice with your accountant.
No, as long as your system keeps up with the changes. At Graffenno, legislation updates are included in every plan.
In 2026 the taxes appear on invoices on a trial basis, at rates of 0.9% (CBS) and 0.1% (IBS), offset against PIS and Cofins. Actual CBS collection starts in 2027.
They decrease gradually between 2029 and 2032 and cease to exist in 2033, replaced by IBS.
Want to see the system issuing with IBS and CBS?
Talk to us and see how Graffenno handles the tax side of the transition in your company's daily routine.
- Guided onboarding
- Human support over WhatsApp