In an interview with JOTA, our partner Camila Tapias commented on the divergence between states regarding the inclusion of the Goods and Services Tax (IBS) and the Goods and Services Contribution (CBS) in the calculation basis for the Tax on Circulation of Goods and Services (ICMS) in 2026.

São Paulo and the Federal District are exempt from inclusion in 2026 because the rates are symbolic and there is no actual collection. Pernambuco, on the other hand, believes that the taxes should be included in the calculation basis regardless of whether they are collected. Starting in 2027, the three states agree with the inclusion, which is likely to generate extensive litigation.

Regarding Pernambuco, Camila believes it is “a mistake by the state and that they will possibly backtrack. Because there is no legal basis for including in the ICMS calculation basis a tax amount that will not be effectively collected, which has no economic impact.” 

As for the general scenario created by the lack of legislative definition on the subject, she warned: “This omission creates enormous legal uncertainty. There is no way to believe that litigation will decrease in this scenario. It is an expected tragedy.”

The other 24 states are expected to publish their positions on the subject in the coming days, as companies need to know how to act as early as January 2026.

Read here.