Brazil enacts Lei Complementar 214/2025, instituting the IBS, CBS and Imposto Seletivo

What changed in detail

Lei Complementar nº 214, de 16 de janeiro de 2025, published in the Diário Oficial da União (Edição Extra nº 11-B) on 16 January 2025, implements the consumption-tax reform mandated by Emenda Constitucional 132/2023.

It:

• institutes the Imposto sobre Bens e Serviços (IBS), the shared state and municipal tax; the Contribuição Social sobre Bens e Serviços (CBS), the federal contribution; and the Imposto Seletivo (IS);
• creates the Comitê Gestor do IBS;
• makes digital platforms, including foreign ones, responsible for IBS and CBS on operations and imports made through them, in the cases listed in art. 22.

For taxable events from 1 January to 31 December 2026, the IBS is charged at a state rate of 0.1% (art. 343) and the CBS at 0.9% (art. 346), offsettable against PIS and COFINS (art. 348).

The law was sanctioned with partial vetoes (Mensagem de Veto nº 88/2025), some of which Congress later rejected. It was amended by Lei Complementar 227/2026 of 13 January 2026.

What it means

LC 214 is the operative law of Brazil’s reform and is in force, though not in its original text: vetoes overturned by Congress and LC 227/2026 changed it, so cite the consolidated version, not the January 2025 publication. The 2026 rates are test rates that sit on the fiscal document and are offset against PIS/COFINS (br-dual-vat-pilot-test-rate-2026); real CBS collection starts in 2027 under the transition EC 132 set. For platforms, art. 22 is the provision to plan around, but its conditions changed. Art. 22(I) still makes the platform answer for IBS and CBS where the supplier is resident abroad. For Brazil-resident suppliers, LC 227/2026 rewrote art. 22(II) and added a § 5: the platform is jointly liable only if it fails to provide the information § 5 requires, or if the supplier is a taxpayer and issues no electronic invoice for the operation.