Tax reform: advances and adjustments to keep on the radar in February

Tax authority details EFD phase-out

Federal Revenue Service clarifies phase-out of EFD-Contributions with the implementation of CBS

The Federal Revenue Service has issued a Technical Note providing guidance on the discontinuation of the Digital Tax Bookkeeping for Contributions (EFD-Contributions), in light of the replacement of PIS and Cofins by the new Contribution on Goods and Services (CBS), scheduled to take effect in 2027.

According to the guidance, once CBS becomes effective, EFD-Contributions will no longer be used to assess PIS and Cofins taxable events. However, taxpayers will be required to maintain the system for at least five years for audit, rectification, and administration purposes, particularly in relation to tax credits accrued through December 31, 2026. These legacy credits may be offset against CBS or other federal taxes, subject to applicable rules.

The Technical Note also confirms that no changes will be made to the 2026 EFD-Contributions layout to accommodate IBS, CBS, or the Selective Tax. During the transition period, reporting will remain limited to PIS and Cofins.

Additionally, the document outlines the creation and updating of electronic tax documents required for implementation of the tax reform, including new electronic formats for airline tickets, water and sanitation services, gas invoices, real estate transactions, road concession services, and the Declaration of Specific Regimes (DeRe).

Rules for linking payments defined

Technical Note defines initial rules for linking payments to electronic invoices under the split payment model

A new Technical Note provides initial guidance on the mandatory linkage between payment transactions and electronic tax documents within the framework of Brazil’s forthcoming split payment mechanism.

Under the guidance, whenever a financial transaction is initiated before issuance of the electronic tax document, taxpayers must report the payment details either within the tax document itself or through a specific linked event. This requirement applies even if financial settlement has not yet occurred, provided there is an expectation of payment.

The linkage between payment and tax document is considered essential for proper calculation of the supplier’s tax liability and the purchaser’s corresponding input credits under the new tax system.

To operationalize this linkage, taxpayers may either transmit the tax document key to the payment service provider at the time the transaction is initiated or record the payment information directly in designated fields of the electronic invoice or through a related event.

The Technical Note also introduces a dedicated information group within electronic documents and specific events for registration and cancellation of the linkage. Initially, the rules apply to electronic transport documents (CT-e, CT-e OS, and CT-e Simplified).

NFS-e layout updated; tax adjustments

Technical Note updates NFS-e layout and introduces adjustments for PIS, Cofins, IBS and CBS

On February 7, 2026, the Executive Secretariat of the National Electronic Services Invoice (NFS-e) Steering Committee issued a Technical Note updating the national standard layout for NFS-e.

The update introduces new fields and rules related to IBS and CBS, as well as technical adjustments affecting PIS and Cofins, particularly with respect to rounding criteria, tolerance thresholds, and the distinction between taxes due and taxes withheld.

Among the key clarifications, the Technical Note establishes that fields designated for reporting PIS and Cofins amounts due should not be used to report withheld amounts. It also introduces specific rounding rules and a one-cent tolerance threshold for reporting these contributions.

The update further includes a specific field for transactions involving the Manaus Free Trade Zone and other Free Trade Areas, and clarifies reporting requirements for new taxable events to be formalized through NFS-e, such as transactions involving intangible assets and activities related to leasing, assignment, rental, and permission for use of movable and immovable property. New national taxation codes (cTribNac) will be introduced for these transactions.

The revised layout and public issuance systems are currently being updated to reflect these changes. An implementation timeline will be published on the official NFS-e portal.

Proposal creates SIM-REF monitoring system

Bill proposes creation of SIM-REF to monitor implementation of IBS and CBS

On 02.10.2026, a bill was introduced before the Chamber of Deputies proposing the creation of the National System for Monitoring and Evaluation of Tax Reform (SIM-REF). The initiative aims to provide continuous and standardized oversight of the implementation of IBS and CBS.

The proposed system would generate technical and statistical data, standardize methodologies, support public policy development, and promote capacity-building among authorities responsible for implementing and supervising the reform.

The technical core would consist of a National Technical Committee including representatives from the Federal Revenue Service, National Treasury, Courts of Accounts, the National Council for Fiscal Policy (Confaz), as well as governors, mayors, and independent experts. The committee would define methodologies, indicators, and econometric models to support semiannual reports.

The bill also assigns to the Federal Revenue Service the responsibility to provide data on tax collection, audits, tax liabilities, offsets, refunds, compliance costs, and administrative impacts. Courts of Accounts would consolidate and disseminate information and report audit findings related to IBS and CBS implementation.

Municipal guidance on real estate regime

Municipal authorities issue initial interpretative guidance on Real Estate Specific Regime

The Technical Council of Municipal Tax Administrations issued a Technical Note addressing the Real Estate Specific Regime established by Complementary Law No. 214/2025. The document outlines how municipalities are likely to interpret the application of IBS and CBS to real estate transactions.

The guidance establishes objective criteria for determining when individuals qualify as taxpayers and provides practical examples illustrating how relatively small variations in transaction values may alter the applicable tax regime.

The Technical Note also identifies drafting inconsistencies in Complementary Law No. 214/2025, particularly regarding the timing at which individuals become taxpayers (whether in the current or subsequent year) and emphasizes the need for clearer regulation to avoid litigation.

It further highlights the importance of analyzing the economic substance of transactions, given that different rate reductions may apply depending on the nature of the real estate activity involved.

The document is non-binding and reflects the interpretative position of municipal tax authorities.

DeRe manuals and layouts released

Federal Revenue Service releases manuals and technical layouts for the new Declaration of Specific Regimes (DeRe)

On 02.10.2026, the Federal Revenue Service released the manuals, technical layouts, and supporting files for the new Declaration of Specific Regimes (DeRe).

Filing of DeRe will be mandatory for financial service providers, health plan operators (including funeral and animal health plans), and entities operating lottery or similar gaming activities.

The early publication of the documentation aims to assist taxpayers, accounting professionals, and system developers in preparing for the new reporting requirements.

The Federal Revenue Service made available the User Manual, technical layouts, XSD files, and an expanded Frequently Asked Questions section. The documentation is accessible on the official Tax Reform portal and the SPED platform, which now includes a dedicated section for DeRe.

Rio launches ICMS–IBS transition program

State of Rio de Janeiro launches PRO-IBS program to coordinate transition from ICMS to IBS through 2032

On February 26, 2026, the State of Rio de Janeiro established the IBS Implementation Program (PRO-IBS) to organize the gradual replacement of ICMS (Brazil’s state VAT) by IBS.

The program sets guidelines for technological adaptation, process restructuring, and coordination with the national IBS Steering Committee and other subnational entities, ensuring continuity of tax collection and enforcement during the coexistence period between ICMS and IBS, scheduled to last until December 31, 2032.

The initiative includes modernization of IT systems, redesign of administrative procedures, and training of public officials to manage the parallel operation of both tax regimes. For businesses, the program signals potential impacts on ancillary obligations, system integration, and tax compliance processes.

This material is for informational purposes only. Our Consumption Tax team is available to provide specific legal advice.