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).
Brazil has no public registry we can query in real time, so a number cannot be confirmed as active from outside. You can still check a Brazilian VAT number against the national format, which catches transcription errors before they reach your accounting system.
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 https://www.taxid.dev/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(
'https://www.taxid.dev/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('https://www.taxid.dev/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: