Brazil VAT non-resident digital services providers & platforms 2026

CBS/IBS new regime brings foreign providers into tax net

As part of the agreed implementation of VAT in Brazil, non-resident providers of digital services will become liable for collection of the new indirect taxes. This includes marketplaces or digital platforms acting on behalf of Brazilian non-registered taxpayers or non-resident providers. The new rules, due to start in 2026, presently impact B2C and B2B transactions.

Shift to place of supply triggers VAT for non-residents

The introduction of the federal CBS and state IBS introduce a VAT-styled regime to replace four existing and cascading taxes. For non-residents, a further change is that CBS and IBS are payable where the service is consumed – destination versus current origin as the place of supply.

This means non-residents will have to register for the new taxes, and potentially follow Brazilian Nota Fiscal e-invoicing obligations.

The consolidated rate will be approximately 26.5%, with a blend of the CBS (8.8%) and IBS (17.7%) indirect taxes.

The two new main indirect taxes replace four existing state and federal taxes starting from 2026 and completing by 2033:

1. CBS 8.8% (Contribuição sobre Bens e Serviços – Contribution on Goods and Services) federal tax on consumption – replacing PIS and Cofins
2. IBS 17.7%  (Imposto sobre Bens e Serviços – Tax on Goods and Services) state and municipal taxes – replacing ICMS and ISS.

Digital platforms and marketplace liabilities

The new proposals also make facilitating marketplaces or similar digital platforms liable for CBS and IBS collections. This is triggered where the platform is responsible for any of the following elements: setting T&C’s; payments; delivery.  Platforms facilitating just listings or payments are excluded from this.

Central and South America VAT on digital services