The Brazilian Federal Revenue Service (RFB) and the IBS Management Committee (CGIBS) have issued joint guidance regarding the election of the specific IBS and CBS tax regime applicable to cooperative societies.
The regime is optional and allows a zero IBS and CBS tax rate to be applied to transactions expressly provided for by law. Therefore, the decision should be carefully assessed, taking into account the cooperative’s activities, its relationships with members, customers, and suppliers, as well as the impacts on tax credits, cash flow, and pricing.
To take effect in 2027, the election must be made between September 1 and October 31, 2026, and will become effective as of January 1, 2027. The procedure involves two steps: registering the election through the portal designated by the Brazilian Federal Revenue Service and submitting a list of members, including their identification details and admission dates.
Simply submitting the election does not complete the process. The submission of the membership list is mandatory for the election to become effective.
For cooperatives, particular attention should be given to an individualized assessment of the effects of the specific regime, especially regarding tax credits, cash flow, relationships within the economic chain, and tax and operational planning.