Tax Reform Simulator

Simulate how the Brazilian tax reform will affect the prices of products and services you consume. Compare the classic taxation model (taxes included, such as ICMS, ISS, and PIS/COFINS) with the proposed Dual IVA system (IBS and CBS) at 26.50%, charged outside.

Sector/Category:

General Services Trade and Merchandise Education and Health (Reduced) Basic Basket (Exempt)

Current Sale Price (Final Price on Invoice)

This is the current price paid with all taxes included.

Sector Classification

Current Aggregate Rate (Estimated Inside)

Sum of ICMS (average 18%) + PIS/COFINS (9.25%).

New Dual IVA Rate (Charged Outside)

Base rate estimated by the Federal Government: 26.50%.

Net Price (Without Tax)

$ 0.00

Current Tax Paid (Inside)

$ 0.00

New Estimated Price (With IVA)

$ 0.00

New Estimated Tax (Outside)

$ 0.00

Final Price Difference

$ 0.00

Percentage Variation

0.00%

Sale Price Comparison

Final Price Composition (With IVA)

Comparative Detail of Regimes

Calculation Item	Current Model (Inside)	New Model (IVA Outside)	Real Difference

How does the outside charging of the Tax Reform (Dual IVA) work?

The Tax Reform (Constitutional Amendment 132/2023) provides for the replacement of five main taxes (ICMS, ISS, IPI, PIS, and COFINS) with the Dual IVA (Aggregate Tax Amount), divided into:

CBS (Contribution on Goods and Services): Federal tax regulated by the Union.
IBS (Tax on Goods and Services): Subnational tax managed by States and Municipalities.

The main structural change, in addition to unification, lies in the charging method: current taxes are charged "inside" (the tax is part of the calculation base itself, generating tax on tax). The new Dual IVA will be calculated "outside" (the tax is charged purely on the net cost price of the product or service, without integrating its own calculation base).

What is inside vs. outside calculation?

Imagine a product whose final price on the shelf today is $1,000.00 under an aggregate rate of 27.25% inside:

Current Calculation (Inside): $275.00 is tax and $725.00 is the net amount for the seller.
New Calculation (Outside - IVA): The IVA will only be charged on the $725.00. If the IVA rate is 26.50%, $192.13 of tax is charged ($725.00 x 26.50%). The final price becomes $917.13 ($725.00 + $192.13).

In this example, the final price drops from $1,000.00 to $917.13 (a real reduction of 8.17%), even with the nominal rates being apparently similar (27.25% old vs 26.50% new). This calculator performs exactly this modeling for you.

Frequently Asked Questions

The service sector in Brazil currently has one of the lowest nominal burdens (taxed by ISS municipal and PIS/COFINS, ranging from 8% to 14.25% in total). With the unified IVA rate estimated at 26.50%, the burden of this sector will increase, raising the final price for the consumer if the company cannot take advantage of credits for taxed inputs in the chain.

The PEC of the reform provides for a 60% reduction in the standard rate for the sectors of health (medicines, clinics, devices), education (school fees, universities), collective passenger transportation, human consumption foods, and agricultural inputs. For these, the effective rate will be approximately 10.60%.

A national basic basket of essential foods was instituted with a zero rate of IBS and CBS. Products such as vegetables, fruits, eggs, rice, beans, milk, French bread, among others defined by complementary law, will not have the incidence of the new IVA, reducing the food cost of Brazilian families.