Brazil VAT Rates 2026
Brazil (Brasil) levies Value Added Tax as ICMS / IPI / PIS / COFINS (transitioning to IBS / CBS). The standard rate is 17%, applied to most goods and services. Reduced rates of 12% and 7% apply to inter-state transactions (ICMS varies by state).
Rate update
Brazil's tax system is highly complex with multiple overlapping taxes. ICMS (state VAT) averages 17% but varies by state and transaction type. Federal taxes (PIS/COFINS/IPI) layer on top. A major tax reform (EC 132/2023) is being implemented through 2033.
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 17% | Most goods and services |
| Reduced | 12% | Inter-state transactions (ICMS varies by state) |
| Reduced | 7% | Basic food basket items (cesta básica) |
| Zero-rated | 0% | Exports (constitutionally immune); basic food basket under the reform |
Registration and filing
| Registration threshold | No general threshold — registration follows state/municipal rules; the Simples Nacional regime covers small businesses |
| Tax authority | Receita Federal do Brasil (RFB) |
| Filing frequency | Monthly state and federal filings (varies by regime and state) |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/BR endpoint to get Brazil data programmatically. Responses are cached for 24 hours.
curl http://localhost:3000/api/v1/rates/BR
# No authentication required for rate lookups
# Response:
# { "country_code": "BR", "tax_type": "vat",
# "standard_rate": 17, "reduced_rates": [12, 7],
# "currency": "BRL", "last_updated": "2026-01-01" }Applying the correct rate in code
For B2B sales to Brazil, validate the customer's CNPJ first — a verified registration is typically required for correct invoicing and zero-rated exports. For B2C, charge the Brazil VAT rate where registration rules require it.
// 1. Validate the customer's Brazil tax ID
const check = await fetch(
'http://localhost:3000/api/v1/validate/BR/CUSTOMER_TAX_ID',
{ headers: { Authorization: 'Bearer YOUR_API_KEY' } }
).then(r => r.json());
// 2. Fetch current Brazil VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/BR').then(r => r.json());
// → { standard_rate: 17, reduced_rates: [12, 7] }
// 3. Apply the correct treatment for your supply
applyRate(check.valid && isB2BExport ? 0 : rates.standard_rate);About Brazil VAT
Brazil is mid-flight through the world's largest VAT reform: the notoriously complex stack of ICMS (state), ISS (municipal), IPI, PIS and COFINS is being replaced by a dual VAT — federal CBS and shared IBS — phased in from 2026 (test rates of 0.9% + 0.1% this year) until full operation in 2033. The combined target rate is expected around 26–28%, which would be among the highest in the world. Until then, the existing ICMS averages ~17–20% by state and inter-state rates of 7% and 12% still apply.
VAT in Brazil is administered by the Receita Federal do Brasil (RFB). Before applying any zero-rate or exemption to a Brazil business customer, validate their registration first.
Sources: PwC Worldwide Tax Summaries · Receita Federal (accessed Jun 2026)
Rate history
- 2023Constitutional amendment EC 132/2023 approved the IBS/CBS dual-VAT reform
- 2026Pilot year: CBS tested at 0.9% and IBS at 0.1% alongside existing taxes
Frequently asked questions
What is the VAT rate in Brazil in 2026?
There is no single rate yet: state ICMS averages 17–20% plus federal PIS/COFINS. The new CBS/IBS dual VAT is being piloted in 2026 at 0.9%/0.1% and will replace the old taxes by 2033.
What is Brazil's tax reform (CBS/IBS)?
Constitutional amendment EC 132/2023 replaces five overlapping taxes with a dual VAT — federal CBS and state/municipal IBS — phased in 2026–2033, with an expected combined rate around 26–28%.
Related concepts and guides: