Tax Reform Sets PIS and Cofins Rules Through 2027
Article 408 of Supplementary Law 214/2025 establishes a transition to the CBS and prevents double taxation on operations with distinct taxable events.
The consumption tax reform brings profound changes to the Brazilian system. PIS and Cofins will be repealed in January 2027 to make way for the Contribution on Goods and Services, known as CBS.
Article 408 of Supplementary Law 214/2025 details how taxpayers must proceed during the transition. The first paragraph of the provision determines that if the same situation generates obligations for both PIS and Cofins by the end of 2026 and for CBS starting in 2027, payment will be made only on the old taxes. Taxpayers are exempt from CBS in these specific cases.
The technical challenge lies in defining what constitutes the same tax situation. Current legislation and the new rule use distinct temporal criteria to identify the taxable event for each tax. The sale of merchandise may involve several milestones such as the issuance of the invoice, the delivery of the product, or the receipt of payment.
The PIS and Cofins legislation, under the non-cumulative regime, focuses on the month in which revenue is recognized. CBS may adopt different moments for the emergence of the tax obligation even while targeting the same contributory capacity. This difference in criteria requires extra attention from companies to avoid errors in tax collection during the fiscal calendar transition.
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