IBS and CBS as the Basis for ICMS and ISS

The series “Loria Explains | Tax Reform” premieres today on the Loria Advogados YouTube channel. In the first episode, we address a question left open by the supplementary law that could increase the amount of ICMS and ISS paid by companies starting in 2027. Should the IBS and CBS be included in the tax base for the older taxes?

The exclusion was included in the text of the Tax Reform Constitutional Amendment Proposal (PEC) and was removed in December 2023. As of October 13, 2026, no state had come out in favor of the exclusion, and six had already officially taken a position in favor of inclusion, including São Paulo. Taxpayers have strong arguments and have already obtained a preliminary injunction and a favorable ruling in the first instance from the São Paulo State Court of Appeals (TJSP), but winning the case may not be enough, because recovering the amounts requires proving that the ICMS was not passed on to the price or obtaining authorization from the customer.

🔔 In the video (watch here), we explain these points and what companies should do before 2027. Watch the full episode on the Loria Advogados YouTube channel and subscribe to stay updated on upcoming episodes.

Tax Architecture for a Country on the Move.